Clean energy investment to more than double to £30B annually by 2035, backed by £1.7B in public-private funding for supply chains.
Advanced manufacturing receives £2.8B in R&D over five years to accelerate innovation, automation, and digitalisation.
New industrial strategy integrates digital tech, life sciences, and services, positioning the UK as a global clean energy and innovation leader.
The UK government has unveiled a sweeping 10-year industrial strategy aimed at slashing corporate electricity bills and cementing the country’s leadership in clean energy, advanced manufacturing, and frontier technologies.
The strategy, announced on Monday, pledges up to £2.8 billion in R&D investment for advanced manufacturing over the next five years to fuel automation, digitisation, and commercialisation. It is part of a broader push to scale up clean energy industries and future-proof the UK’s economy.
“This government is doubling down on Britain’s clean power strengths as we build this new era of clean energy abundance, helping deliver good jobs, energy security and lower household bills,” said Energy Secretary Ed Miliband.
Clean Energy Revolution
The centrepiece of the plan is the Clean Energy Industries Sector Plan, which targets more than £30 billion in annual investment by 2035—more than double current levels. Since July, the UK has already attracted £40 billion in private clean energy investment.
As part of this momentum, Great British Energy will receive an additional £700 million—on top of a previously announced £300 million—to develop domestic manufacturing for floating offshore platforms, electric cables, and hydrogen infrastructure. This injection, combined with industry and Crown Estate co-investment, brings total supply chain funding to £1.7 billion.
“Great British Energy will help the UK win the global race for clean energy jobs and growth,” said CEO Dan McGrail. “We are working closely with businesses to invest in strategic needs and get funding out fast.”
The strategy also includes plans to expand the Clean Industry Bonus—an incentive scheme to localise clean energy manufacturing—across sectors like hydrogen and onshore wind, directing investment into coastal and industrial communities.
Broader Sectoral Ambitions
Alongside clean energy and manufacturing, the strategy also focuses on:
Life Sciences: Up to £600 million for a Health Data Research Service to build an AI-ready, secure health platform.
Creative Industries: Launch of a £150 million growth fund for screen, music, and gaming sectors.
Professional and Business Services: Introduction of AI tools, mutual recognition of qualifications to boost exports, and creation of five new industry hubs.
Digital & Technology: A push to place the UK among the top three global tech innovation ecosystems, with focus on AI, quantum, semiconductors, cyber, and engineering biology.
“The UK’s pitch is clear – build it in Britain. Power the world,” said Miliband.
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EU Collaboration & AI Leadership
The strategy confirms renewed cooperation with the EU on energy and carbon pricing, aiming to cut red tape and support investment in North Sea projects. Britain is also exploring participation in the EU’s internal electricity market.
Additionally, Lucy Yu, CEO of the Centre for Net Zero, has been appointed the UK’s Clean Energy AI Champion to lead adoption of AI across the sector.
“Clean energy is the economic opportunity of the twenty-first century,” the government said. “This plan ensures that the revolution is built in Britain, bringing jobs and resilience to the heart of our economy.”
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