Aldersgate Group reaction: UK’s Modern Industrial Strategy

Reacting to the UK’s Modern Industrial Strategy, Rachel Solomon Williams, Executive Director at the Aldersgate Group, said: “The government has provided welcome support and direction to businesses with this industrial strategy. In an increasingly uncertain world, the measures set out today are more important than ever, to both spark growth and ensure national security through robust supply chains and access to reliable energy. The plan rightly places net zero at its core, reflecting the private sector recognition that net zero is a key growth driver in the future, and that it will boost our energy security. It also effectively takes a cross-sector approach, while prioritising those most in need of support with tangible policy initiatives. This joined up approach to government will pay dividends in terms of growth and productivity.”

Considering the implications for UK industry, Marie-Laure Hicks, Head of Policy at the Aldersgate Group, said: “High electricity prices have presented significant long-term challenges for UK industry and the UK economy’s competitiveness on the world stage. The government has recognised the importance of this issue and the increased discount through the British Industry Supercharger from 2026 is welcome immediate relief for eligible businesses. The government must now press ahead to implement the newly announced and much-needed British Industrial Competitiveness Scheme, and support for Power Purchase Agreements that will be welcomed by businesses across the country. Delivering on grid infrastructure promises must be a priority to maximise the benefits of increasing access to cheaper renewable energy and enabling industrial decarbonisation. The new Connections Accelerator Service, and new powers in the Planning and Infrastructure Bill, will help to get connection delays down, it’s imperative that this is implemented at pace and in a way that secures genuine public buy in. All eyes will now turn to the Review of Electricity Market Arrangements in the coming weeks, government must provide certainty on what our future energy market looks like, this is critical not just for energy intensive industry, but also renewables developers and the wider public.”

Reflecting on the skills announcements, James Fotherby, Senior Policy Officer at the Aldersgate Group, said: “Today’s Industrial Strategy is a much-needed step toward building a coherent and joined-up skills and employment system that works for both workers and employers – particularly SMEs – who find the current system fragmented and difficult to navigate.

By utilising the full range of levers – procurement, immigration, and funding – behind the eight growth sectors, the government is creating the conditions for private sector investment in training and plugging the chronic skills shortages that have held back economic growth. We particularly welcome funding uplifts for courses and high-quality teachers in priority sectors, the introduction of the Lifelong Learning Entitlement from 2027, and the promise of a future package to support the engineering sector, which is critical to delivering net zero infrastructure. As these reforms move forward, it’s essential that the push for flexibility and speed does not come at the expense of quality and competency.”