UK Government unveils Industrial and Trade Strategies

Last week, the UK government unveiled two complementary blueprints to drive economic resurgence: the Invest 2035 Industrial Strategy (released June 23) and the New Trade Strategy (published June 25). Both aim to position Britain as a technology-driven, globally connected, and resilient economy. The new strategies were welcome but some business support organisations do so with caution and emphasise the success remains on the actual delivery of these strategies.

1. Invest 2035: A Modern Industrial Strategy

The 10-year Invest 2035 plan targets eight high‑growth sectors — advanced manufacturing, clean energy, digital tech, life sciences, defence, creative industries, professional & business services, and financial services. And also, identified chemicals, steel, critical minerals, composites and materials as key foundational industries which are vital for the 8 priority sectors, alongside the logistics sector - mentioning ports, construction and electricity networks.

The strategy lays out ambitious fiscal support:

• Boosting R&D: Increasing annual R&D spend to £22.6 billion by 2029/30, including > £2 billion dedicated to AI and £2.8 billion to advanced manufacturing 

• Finance for SMEs: British Business Bank’s lending capacity rises to £25.6 billion, complemented by a £4 billion dedicated sector fund.

• Skills investments: Commitment to £1.2 billion annually by 2028/29 to upskill workers in digital, defence, and engineering.

• Energy cost reduction: Cutting industrial electricity bills by up to 25% from 2027 for energy-intensive firms . The UK government estimates that 7,000 businesses employing over 300K people, could be eligible.

• Regulatory reform: A 25% cut in administrative regulatory costs, fewer regulators, and faster planning for biotech, AI, and autonomous vehicle.

• Strategic capital allocation: National Wealth Fund and Innovate UK directed at key sectors; more trade mission funding via UK Export Finance..

• Public infrastructure: Backed by a £725 billion Infrastructure Strategy over 10 years via the new NISTA to speed up delivery.

Parliament welcomed the strategy, with Prime Minister Starmer declaring it a “watershed moment…creating a prosperous, proud and outward‑facing nation”. Industry reactions were cautiously positive: Logistics UK praised its recognition of logistics’ critical role, while chemical firms welcomed reduced energy costs but warned implementation remains crucial.

GM Chamber Policy Director, Chris Fletcher, said: “This has been keenly anticipated and since the Green Paper last Autumn, businesses and business organisations including the Chamber have been putting forward to Government what is needed to kickstart growth in the UK.

“The 10-year strategy laid out in the document clearly sets out a different approach to sector-specific activity and it covers a lot of necessary changes that will be needed in legislation, planning and access to finance if UK business is to succeed over the next decade. The Industrial Strategy brings together elements from the Spending Review and last week’s Infrastructure Strategy and when these are all put together some sense of the scale of what is needed becomes apparent.

“It is a detailed and ambitious plan and we will be going through this is fine detail over the coming days. One big win for GM though is confirmation that the Industrial Strategy Council, the body that will be overseeing the delivery of this, will be headquartered in Manchester from 2026. We think this is a significant benefit and will help in the wider delivery of the strategy building on the devolved areas of the country.

“With other strategies to be announced in the coming months such as the Small Business Strategy and legislation such as the Planning and Infrastructure Bill to start its path through Parliament there is still a lot of work to be done by government but at least now there is some sort of path to follow and a bold vision in place.”

2. New Trade Strategy: Agile, Assertive, Globally Focused

Published on June 25, the Trade Strategy pledges to make the UK “the most connected nation in the world” by:

• Unlocking markets: £5 billion through the Ricardo Fund to address regulatory barriers; UKEF capacity expanded to £80 billion with enhanced support for SMEs 

• Stronger trade defences: Sharpened trade remedy tools to counter unfair practices.

• Services & credentials: Mutual recognition of qualifications to fortify the UK’s professional services status.

• Green trade focus: Builds on pacts with Norway, Japan, South Korea, and explores deeper ties with Brazil, Philippines, and Mexico,

The British Chambers of Commerce welcomed the dual strategies for ambition and clarity but cautioned that benefits will depend on tackling costs, red tape, skills shortages, and national insurance hikes.

Susana Córdoba, Head of International Trade at GM Chamber, said: "It is a relief to see the government acknowledging trade barriers place an important role in the strategy and allocating funding to address these. Whilst we welcome the news of extending UKEF's capacity, it remains crucial funding is accessible by SMEs, who are currently being let down by trade financing systems. It also remains crucial to ensure government continues to work closely with business support organisations such as the Chambers of Commerce, Trade Associations and other relevant organisations to ensure the strategy is meeting the needs of businesses across the UK.

"We also welcome the focus on mutual recognition of qualifications to strengthen UK's professional services sector, which is of primary important for regions such as Greater Manchester."

Conclusion

Together, these strategies represent a coordinated economic effort: Invest 2035 provides long-term infrastructural, financial and skills backing, while the Trade Strategy ensures global outlets and protections. Success however relays on execution - streamlining bureaucracy, delivering green energy cost relief, and ensuring financing reaches businesses - and specially SMEs. If the government delivers on investment pledges, and international openings, these strategies have potential to propel the UK toward sustainable, inclusive 2035‑era growth.

Sources: UK Government, UK Parliament, ICAEW, The Times, Financial Times, Logistics.co.uk,