Welsh Business Leaders Welcome UK Government's Industrial Strategy

Business News Wales

24-06-2025

The UK Government's modern Industrial Strategy has been welcomed by business leaders in Wales.
The 10-year plan will see billions in investment and tens of thousands of new jobs supported in Wales, says the UK Government.
The key measures for Wales are: More than £4 billion for the advanced manufacturing sector in the UK over the next five years. Wales has a leading advanced manufacturing sector with companies such as Airbus based in Broughton in North Wales.
A centre for doctoral training in semiconductors, led by Swansea University, building on the world-leading cluster based in South Wales.
A Defence Growth Deal cluster to build on Wales's major strengths. The top five Ministry of Defence suppliers all have a footprint in Wales.
A Defence Growth Deal cluster to build on Wales's major strengths. The top five Ministry of Defence suppliers all have a footprint in Wales. A new British Business Bank champion for the Cardiff Capital Region to connect investors with businesses and kickstart growth.
£30 million for a Local Innovation Partnerships Fund in Wales to work with the Welsh Government and Innovate UK to grow innovation.
The National Wealth Fund working with the Development Bank of Wales to identify and secure financing for investment projects in Wales.
Support for the UK's city regions and clusters by increasing the supply of investible sites through a new £600 million Strategic Sites Accelerator, enhanced regional support from the Office for Investment, National Wealth Fund, and British Business Bank, and more.
Strengthened support from the Office for Investment to help identify, shape and deliver strategic investment opportunities across the UK.
Frank Holmes, Founding Partner of Gambit Corporate Finance and Chair of the Cardiff Capital Region Investment Board, said:
'Today's announcements mark a timely and important shift towards a connected, strategic approach to economic growth. The renewed focus on industrial strategy and SME finance speaks directly to the opportunities we are unlocking in the Cardiff Capital Region. We have backed innovative and scalable businesses like Whisper TV, showcasing how tailored regional finance can drive job creation, innovation and global reach.
'The UK's commitment to extending SME access to finance aligns perfectly with the ecosystem we are building in CCR as a proven delivery partner and a model for regional economic development.'
Howard Rupprecht, Managing Director of CSconnected, said:
'Today's Industrial Strategy announcement is extremely positive, and CSconnected warmly welcomes the UK Government's commitment to the semiconductor sector.
'This type of strategic support is vital for strengthening supply chains, accelerating workforce development, and driving the innovation needed to deliver the technologies of the future while driving economic growth for the UK through industry. These initiatives are essential for ensuring the UK remains globally competitive in the fast-growing and strategically important compound semiconductor industry.
'Regional clusters like ours play a critical role in delivering impact at scale, and we look forward to continuing our collaboration with government and industry partners to help the UK reach its ambitions as a tech leader.'
Luciana Ciubotariu, CEO of Celtic Freeport, said:
'Celtic Freeport welcomes the UK Industrial Strategy, following recent budget allocations and renewables announcements – a period of growing momentum. As South Wales' industrial base evolves, this strategy supports both emerging and established sectors and we are thrilled to see a renewed focus on regional and place-based development with additional investments committed.
'With a strong skilled workforce, innovation assets and world-class infrastructure, the Celtic Freeport team and its partners stand ready to continue to support a thriving Wales' industrial cluster.'
Alwen Williams, Chief Executive, Ambition North Wales, said:
'I can see a positive alignment between the focus areas within this Industrial Strategy, and our plans and aspirations for North Wales. It will enable us to build on our strengths as a region, particularly across the advanced manufacturing and low carbon energy sectors – encouraging growth and further investment. The emphasis on support for innovation is also to be welcomed – something that we consistently champion in North Wales.'
Net Zero Industry Wales CEO Ben Burggraaf said:
'We asked for a clear and decisive Industrial Strategy, with an explicit role for Welsh industry. This enables industry to move forward on its decarbonisation journey and support and retain well-paid jobs across Wales.
'Today's announcement of support for the most energy-intensive firms in terms of the British Industrial Competitiveness Scheme, more funding for SMEs via the British Business Bank, a Global Talent Taskforce and more money for jobs and skills, is a great start.
'Sector plans for Advanced Manufacturing and Clean Energy Industries — two pillars of our own Industrial Strategy for Wales — also demonstrates a commitment and understanding of the cross-cutting work of industry.
'This work needs to begin straight away. We look forward to working with the UK and Welsh Governments, in close partnership with our industrial partners, in taking these ambitions forward, to make Wales a Clean Energy Transition Hub and remain a cornerstone of the UK industrial base.'
John Hurst, Chair of the Federation of Small Businesses Wales, said:
'The publication of the UK Government's Industrial Strategy provides an opportunity for a conversation about where we take the Welsh economy next, at a time when businesses large and small are looking for greater clarity and confidence.
'The success of any strategy will lie in our smaller businesses, and so this strategy, and the support which comes alongside it, needs to demonstrate its relevance to our smaller businesses – whether driving up innovation or productivity, increasing available funding or developing those businesses for supply chains – whether defence, aviation or renewables.
'With skills such a fundamental issue for businesses, we expect to see Welsh Government using the consequential funding from skills measures within this Strategy be used to reinforce our own skills system here in Wales and have that tailored to the needs of smaller businesses.
'A particular dependency in Wales is that this Strategy should align with – and be reinforced by – Welsh Government's own ambitions for businesses and the economy, so businesses will expect to see clear and meaningful partnership between UK and Welsh Governments now, and with a new Welsh Government following the elections in May 2026.'
Sarah Williams-Gardener, Chair of Fintech Wales, said:
'We are delighted to see financial services recognised as a key sector in this Industrial Strategy. We look forward to working closely with the Government to help unlock the sector's full potential.
'The emphasis on AI and the compute power required to support its development is particularly welcome, as we begin to see generative AI driving innovation across financial services—empowering both providers and customers through the next generation of digital banking platforms.'
Louise Harris, CEO of Tramshed Tech in Cardiff, said:
'The launch of the UK Government's Industrial Strategy is a pivotal moment for our tech and innovation ecosystem. By aligning local strengths with national ambition, this strategy provides a powerful platform for Welsh businesses to grow, attract investment and lead in emerging sectors such as technology, advanced manufacturing, and creative industries.
'This strategy recognises that innovation isn't just about technology in isolation – it's about creating sustainable, high-quality jobs while tackling real-world challenges. This approach will create the perfect environment for startups and scale-ups to thrive, knowing they have both the infrastructure, skills and strategic support to take their innovations from Wales to the world.'
Gus Williams, interim CEO at Chambers Wales South East, South West and Mid, said:
'The first release of the Industrial Strategy hits the right notes and reflects many of the issues we have raised with government through Chambers Wales South East, South West and Mid and the British Chambers of Commerce.
'Although overall productivity in Wales doesn't look to have improved over the past decade, in manufacturing it is a very different story where there have been significant improvements in productivity, so it is good to see this being recognised. Support for the advanced manufacturing sector is positive news.
'The high cost of energy for large commercial users is also recognised as something that severely hampers our competitiveness, and we have lobbied hard for this to be seriously addressed, so it is good to see this at the forefront of government announcements this morning. Support for the renewable and defence sectors should also have a positive impact in Wales, along with the life sciences and creative industries where Wales has some fantastic businesses.
'The initial release also recognises issues with skills, particularly in construction which is a huge bottleneck to getting things built here in Wales and solving housing issues. At the Chamber we work closely with both the UK and Welsh Governments on international trade so again it is good to see ongoing support for exporters to grow their businesses.
'The beginnings of a long-term coherent approach to supporting business is something we have sorely missed so it is good to see the initial steps being taken and we look forward to working with the UK and Welsh Governments to make further progress on these issues.'
Robert Lloyd Griffiths, Director of ICAEW in Wales, said:
'Together with our members, I sincerely hope that this eagerly awaited Industrial Strategy now gives us the key to unlock the growth and investment that we desperately need to realise our economic potential in Wales.
'Help for energy intensive industries, investment in the advanced manufacturing sector, a defence growth deal cluster and support for the Cardiff Capital Region will all help to attract investment, drive growth and create jobs. We've now got to get on and make it happen, and I know that my colleagues and our ICAEW members will do all that we can to support.'
The Industrial Strategy also unveiled a consultation on plans to cut electricity bills for some manufacturers. From 2027, the new British Industrial Competitiveness Scheme will reduce electricity costs by up to £40 per megawatt hour for more than 7,000 electricity-intensive businesses in manufacturing sectors like automotive, aerospace and chemicals.
These firms will be exempt from paying levies such as the Renewables Obligation, Feed-in Tariffs and the Capacity Market. Eligibility and further details on the exemptions will be determined following consultation, which will be launched shortly, said the UK Government.
The UK Government is also increasing support for the most energy-intensive firms — like steel, chemicals, and glass — by covering more of the electricity network charges they normally have to pay through the British Industry Supercharger. These businesses currently get a 60% discount on those charges, but from 2026, that will increase to 90%.
Secretary of State for Wales Jo Stevens said:
'Wales has huge potential and our government's Industrial Strategy will harness the strengths of our businesses and workforce to drive growth and create jobs.
'The strategy will support key sectors like aerospace and compound semiconductors while developing industries of the future like floating offshore wind where Wales is well-placed to be a world leader.
'Our modern Industrial Strategy is built to last and make Wales one of the best places to invest and do business. Working alongside Welsh Government we will boost growth, raise wages and create wealth across our country.'
Rebecca Evans, Welsh Government Cabinet Secretary for Economy, Energy and Planning said:
'The Welsh Government has worked with the UK Government in shaping the new industrial strategy and ensuring that Wales is pivotal to its delivery.
'Wales has always punched above its weight — and with our strengths in clean energy, defence, and advanced manufacturing, we are well placed to seize the opportunities that lie ahead in high-growth sectors and ensure quality jobs continue to grow in Wales.
'We welcome the commitment to making it easier for the private sector to invest here, as well as the cut to electricity costs for manufacturers in our growth sectors.
'This clarity of ambition — combining state backing with business investment — is exactly what's needed to unlock growth across our communities.
'All eight key growth sectors — advanced manufacturing, clean energy, creative industries, defence, digital and tech, financial services, life sciences, and professional business services — are primed to grow in Wales.
'This is about jobs, innovation, and resilience for the long term. This is what a government serious about Wales' future looks like — focused on delivery, rooted in fairness, and ambitious for what our nation can achieve.'
The UK Government said it recognised that investment from private companies is essential to creating new jobs, growing the economy and securing public services, adding that the Strategy will also introduce measures to make it quicker, easier and more profitable for businesses to invest in the UK, with the aim of significantly increasing businesses investment and in key growth sectors by 2035.
Five sector plans have also been published: Advanced Manufacturing – Backing the Advanced Manufacturing sector with up to £4.3 billion in funding, including up to £2.8 billion in R&D over the next five years, with the aim of anchoring supply chains in the UK – from increasing vehicle production to 1.35 million, to leading the next generation of technologies for zero emission flight.
Clean Energy Industries – Doubling investment in Clean Energy Industries by 2035 with a further £700 million in clean energy supply chains, taking the total funding for the Great British Energy Supply Chain fund to £1 billion.
Creative Industries – a £380 million boost for film and TV, video games, advertising and marketing, music and visual and performing arts will improve access to finance for scale-ups and increase R&D, skills and exports.
Digital and Technologies – more than £2 billion to drive the AI Action Plan, including a new Sovereign AI Programme and targeting R&D investment at frontier technologies such as cyber security in Northern Ireland, semiconductors in Wales and quantum technologies in Scotland.
Professional and Business Services – adoption of UK-grown AI and working to secure mutual recognition of professional qualifications agreements overseas.
Ann Watson, CEO of Enginuity, the former Sector Skills Council, pledged to work with government to implement the Industrial Strategy and Advanced Manufacturing Plan.
She said:
'Government has clearly listened to businesses: alongside energy costs, skills gaps are recognised as a key barrier that must be removed to unlock growth.
'With a clearly articulated plan now in place, government must turn its focus to policy implementation and ensure that SMEs do not fall through the cracks of narrow sector definitions or prescriptive eligibility criteria. Government's recognition that SMEs are the backbone of the manufacturing sector will be fundamental to delivering economic growth, and for the UK to be recognised as the best place in the world to start, grow and invest in this sector.
'SMEs often don't fit neatly into sector boxes, instead they play a crucial role in a diverse mix of supply chains, often simultaneously feeding into several of the designated priority sectors. A flexible, holistic approach will therefore be needed from government when it comes to sector definitions and the policy interventions that follow, to recognise the critical cross sector role SMEs play in multiple supply chains.
'Manufacturing businesses want their sector to drive economic growth: they want to be at the forefront of technological innovation, making world leading progress in decarbonisation and to be recognised as provider of good jobs.'