After the Spending Review, where next for the UK Industrial Strategy?
We now know the first part of the government’s offer on growth, with the Chancellor setting out the day-to-day spending envelope for the next three years and capital spending for the next four last week (find the full techUK analysis here).
In a snap survey of techUK members, most respondents reported that the announcements in the Spending Review were roughly what they were expecting. Members identified opportunities in areas such as government digitisation and R&D, but reported that it remains unclear how the government plans will fit together, and flagged concerns over delivery. This is likely not helped by the fact that the Industrial Strategy and its accompanying sector plans remain unknown for now.
What we do know is that, with recent downgrades of UK growth forecasts by the CBI and the IMF, it has never been clearer that government will not be able to turn the economy around without significant investment from the private sector.
In our response to the Spending Review, techUK reiterated that the devil will be in the detail when it comes to delivering. Whilst the Industrial Strategy is just the start of the delivery process, it remains the most important milestone left to look towards in the coming months.
Where next?
On the whole, the tech sector saw some positive announcements in the Spending Review, from the £86 billion for R&D, to the £750 million announced for supercomputer capacity, and to the expanded British Business Bank to support start-ups and scale-ups’ access to finance. As stated above, however, the true picture will only become clear with time and through careful implementation, and the Spending Review did not address every issue facing the tech sector. Outstanding issues include:
Energy costs: techUK members have told us in surveys from 2024 and 2025 that energy costs are the most significant barrier to doing business in the UK, with UK energy prices amongst the most expensive in Europe. The high cost of energy is passed on to businesses not just through direct operating costs, but as a cost of the productivity-boosting digital systems and cloud services modern firms need to be competitive. Tangible action to reduce energy prices is essential for reducing the high cost of doing business in the UK and making the UK more competitive internationally
Adoption: We know that the benefits of technology will only be felt equally if it is adopted widely, confidently, and evenly. With the speed of technological advancement only increasing in the age of AI, a failure to do so risks a two-tier economy split between early adopters who rapidly outpace their rivals and those firms that find themselves left behind. Over the previous months, we have raised concerns that the approach taken in the Industrial Strategy, which delegates sector-specific plans to an array of different Government departments and public bodies, risks a fractured and uneven approach to adoption. The results of the cross-government review of tech adoption are intended to mitigate this risk. Either way, a holistic approach to adopting the technologies of tomorrow will be one of the defining measures of success of this ten-year strategy.
Skills: Despite £160 million for TechFirst to ensure people have the right skills to deliver technological change, the Spending Review did not confront the question of how we can ensure the UK’s workforce remains dynamic and competitive in a new age of AI, especially as over half of UK workers cannot do all 20 of the basic digital skills for work outlined in the Essential Digital Skills Framework. Currently, there is no concrete plan for how to deliver the skills workers and businesses need across the United Kingdom.
Digitisation spending: The Spending Review did not outline a wider plan for supporting essential digitisation of business systems across the UK, or hint how a later plan would be supported. This is especially concerning given the Spending Review is partly relying on government departments and public services, from health to defence, using digitisation of their systems and of their service delivery to citizens to find efficiency gains and reduce spending while improving the quality of service provision. While spending on digitisation can certainly improve service quality while reducing costs, particularly through replacing legacy systems still in use by public bodies, the Spending Review did not set out a wider plan for how this would be done.
These areas are mutually reinforcing. A government committed to digitisation in the public and private sectors needs to make digital technology more affordable and give people the skills to understand new technology and manage its implementation. Similarly, those who are trained in digital skills need businesses to be able to afford digital systems to utilise those skills.
How the Industrial Strategy can build on the Spending Review
The UK has suffered from several stop-and-start growth plans and industrial strategies in previous years. The Government has set out its intention that this time will be different, with a long-term commitment to national renewal. techUK supports this vision.
In November 2024, we called on the Industrial Strategy to view tech not just as a key growth sector in its own right, but also to see tech as a key ‘horizontal’ that enables businesses across the UK economy. From basic digitisation to AI, tech has vast potential to boost UK productivity and make the UK economy fit to face the future. Put simply, tech must remain at the heart of any plan for growth.
The tech sector is the UK’s modern economic success story, with the industry's contribution to the UK economy growing by 25% between 2010 and 2019, and now adding over £150bn per year gross value add. The digital and technology sector plan of the Industrial Strategy needs to support this success and properly utilise the money laid out in the Spending Review to support the sector.
Those sectors that benefitted from large amounts of support in the Spending Review, including health and defence, require digital tech to ensure they are fit to meet the modern day, from facilitating access to appointments to defending against cyber threats from the UK’s enemies. The world these public services will be operating in is increasingly digital, they need to be able to keep pace.
The other sector plans must also recognise the importance that technology will play in their success. For example, the professional and business services sector relies on business software to facilitate everyday activity, while advanced manufacturing requires tech not just to facilitate production, but often to provide a customer for what is made on the production line. No sector plan is complete without tech.
The end of the beginning
The Industrial Strategy needs to provide the final piece to complete the government’s offer on growth. When published, it should be abundantly clear where the government’s economic priorities lie, what support can be expected when and for which sector, and where businesses can maximise their investments.
By doing all of the above, the government will give the Industrial Strategy the best chance to win the confidence of business, and to see out its intended lifespan until 2035. This confidence is, firstly, fundamental to crowding in much-needed private investment and augmenting available public spending in areas prioritised by the Strategy (more on that in this opinion piece). Secondly, this confidence will ensure the Industrial Strategy, alongside the Industrial Strategy Council, is accepted as a point of consensus across the political landscape, giving the Strategy a far firmer foundation in the eyes of the private sector.
techUK will be publishing a full breakdown of the Industrial Strategy once it has been released by the government. You’ll be able to find this summary on the techUK Industrial Strategy Hub, where members will also be able to register for our webinar on 27 of June analysing the government’s full offer on growth.
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Antony Walker is deputy CEO of techUK, which he played a lead role in launching in November 2013.
Antony is a member of the senior leadership team and has overall responsibility for techUK’s policy work. Prior to his appointment in July 2012 Antony was chief executive of the Broadband Stakeholder Group (BSG), the UK’s independent advisory group on broadband policy. Antony was closely involved in the development of broadband policy development in the UK since the BSG was established in 2001 and authored several major reports to government. He also led the development of the UK’s world leading Open Internet Code of Practice that addresses the issue of net neutrality in the UK. Prior to setting up the BSG, Antony spent six years working in Brussels for the American Chamber of Commerce following and writing about telecoms issues and as a consultant working on EU social affairs and environmental issues. Antony is a graduate of Aberdeen University and KU Leuven and is also a Policy Fellow Alumni of the Centre for Science and Policy at Cambridge University.
As Head of Public Affairs, Alice supports techUK’s strategic engagement with Westminster, Whitehall and beyond. She regularly works to engage with ministers, members of the UK’s parliaments and senior civil servants on techUK’s work advocating for the role of technology in the UK’s economy as well as wider society.
Alice joined techUK in 2022. She has experience working at both a political monitoring company, leading on the tech, media and telecoms portfolio there, and also as an account manager in a Westminster-based public affairs agency. She has a degree from the University of Sheffield in Politics and Philosophy.
Edward leads the Digital Economy programme at techUK, which includes our work on online safety, fraud, and regulation for growth initiatives.
He has prior experience working for the Department for Digital, Culture, Media and Sport and has previously worked for a number of public affairs consultancies specialising in research and strategy, working with leading clients in the technology and financial services sectors.
Samiah Anderson is the Head of Digital Regulation at techUK.
With over six years of Government Affairs expertise, Samiah has built a solid reputation as a tech policy specialist, engaging regularly with UK Government Ministers, senior civil servants and UK Parliamentarians.
Before joining techUK, Samiah led several public affairs functions for international tech firms and coalitions at Burson Global (formerly Hill & Knowlton), delivering CEO-level strategic counsel on political, legislative, and regulatory issues in the UK, EU, US, China, India, and Japan. She is adept at mobilising multinational companies and industry associations, focusing on cross-cutting digital regulatory issues such as competition, artificial intelligence, and more.
She holds a BA (Hons) in Politics, Philosophy, and Economics from the University of London, where she founded the New School Economics Society, the Goldsmiths University chapter of Rethinking Economics.
Audre joined techUK in July 2023 as a Policy Manager for Data. Previously, she was a Policy Advisor in the Civil Service, where she worked on the Digital Markets, Competition and Consumers Bill at the Department for Science, Innovation and Technology, and at HM Treasury on designing COVID-19 support schemes and delivering the Financial Services and Markets Bill. Before that, Audre worked at a public relations consultancy, advising public and private sector clients on their communications, public relations, and government affairs strategy.
Prior to this, Audre completed an MSc in Public Policy at the Korea Development Institute and a Bachelor's in International Relations and History from SOAS, University of London. Outside of work, she enjoys spending time outdoors, learning about new cultures through travel and food, and going on adventures.
Mia focuses on shaping a policy environment that fosters the expansion of the UK tech sector while maximising the transformative potential of technology across all industries.
Prior to joining techUK, Mia worked as a Senior Policy Adviser at the Confederation of British Industry (CBI) within the Policy Unit.
Mia holds an MSc in International Development from the University of Manchester and a BA(Hons) in Politics and International Relations from the University of Nottingham.
Archie Breare joined techUK in September 2022 as the Telecoms Programme intern, and moved into the Policy and Public Affairs team in February 2023.
Before starting at techUK, Archie was a student at the University of Cambridge, completing an undergraduate degree in History and a master's degree in Modern British History.
In his spare time, he likes to read, discuss current affairs, and to try and persuade himself to cycle more.
Dani joined techUK in February 2025 as a Policy Manager in the Digital Regulation team.
Prior to this, Dani worked in political monitoring where she was a consultant for Digital, Culture, Media and Sport. In this role, she developed a strong understanding of parliamentary procedure, closely following all of the major developments in the tech centre and working with several key stakeholders and regulators.
She has an undergraduate degree in History from the University of Bristol and an MPhil in Modern European History from the University of Cambridge.
Outside of tech, Dani has a strong interest in addiction policy, particularly towards drugs, having written her dissertation on the topic as well as several subsequent research projects. In her spare time, she enjoys cooking and following all things motoring, whether that be F1, MotoGP or Formula E.
Oliver is a Junior Policy Manager at techUK, working across Public Affairs and Digital Regulation policy. He supports the organisation’s engagement with government and parliament, contributes to shaping techUK’s regulatory agenda, and plays a key role in coordinating political outreach, policy projects, and flagship events.
He joined techUK in November 2023 as a Team Assistant to the Policy and Public Affairs team, before stepping into his current role. He has been closely involved in efforts to ensure the tech sector’s voice is heard in the policymaking process.
Oliver holds a Master’s in Policy Research from the University of Bristol and a BSc in Policy from Swansea University. During his studies, he contributed to mental health research as a Student Research Assistant for the SMaRteN network.
Outside of work, Oliver is a keen debater and remains active in the UK debating community, having previously led the Swansea University Debating Union. He enjoys exploring complex issues from multiple perspectives and values clear, thoughtful communication in policy discussions.
Tess joined techUK as an Policy and Public Affairs Team Assistant in November of 2024. In this role, she supports areas such as administration, member communications and media content.
Before joining the Team, she gained experience working as an Intern in both campaign support for MPs and Councilors during the 2024 Local and General Election, and working for the Casimir Pulaski Foundation on defence and international secuirty. She has worked for multiple charities, on issues such as the climate crisis, educational inequality and Violence Against Women and Girls (VAWG). In 2023, Tess obtained her Bachelors of Arts in Politics and International Relations from the University of Nottingham.
Archie Breare joined techUK in September 2022 as the Telecoms Programme intern, and moved into the Policy and Public Affairs team in February 2023.
Before starting at techUK, Archie was a student at the University of Cambridge, completing an undergraduate degree in History and a master's degree in Modern British History.
In his spare time, he likes to read, discuss current affairs, and to try and persuade himself to cycle more.
The UK has a world-leading regulatory system that supports the economy while protecting the society. However, strategic reforms to the UK’s regulatory regime could help unlock its full potential as a vital catalyst for growth, bringing considerable rewards across industry.
