23 Jun 2025
by Antony Walker, Edward Emerson, Archie Breare, Mia Haffety

tech2035: Tech is the driving force behind the Modern Industrial Strategy

techUK sets out a summary of the Industrial Strategy published today (Monday 23 June). Click here for our analysis of the Digital and Technologies sector plan.


techUK strongly supported the development of a long-term plan for industry when we responded to the Industrial Strategy Green Paper in November 2024. In that response and our activity since, we have called for action from government in several key areas, including reduced industrial energy costs, greater policy stability, and clear prioritisation from Government as to what it wants to achieve and where it sees the role of industry to be. 

We are pleased to see the tech sector recognised both as a key growth sector in its own right, and as an enabler of the rest of the economy. This recognition is encapsulated in the following section from the Strategy: ‘Central to our approach will be the principle that innovation and investment must be rewarded. The nations that win in this new era will be those that are prepared to put their skin in the game to share risk with innovators and which welcome productive private investment and the benefits it brings.’  

We are pleased to see action taken to promote the growth of the tech sector across the UK, many of which were recommendations from techUK. This includes measures not just to promote the digital and technologies as a key growth-driving sector, but pledges to embrace tech to improve the UK’s business environment and to make investment go further, such as support for SME digitisation and schemes to increase the use of data as an economic asset. 

We are also glad to see the government has pledged to look to the future of tech by including support for the scale-ups that power our economy, building on some recommendations from our Scaleup Action plan and expanding public funding into R&D, helping the UK to develop a lead in the technologies of tomorrow.  

The Strategy also echoes techUK’s long-held view that the tech sector can drive growth across the country, and that the Strategy should support tech clusters throughout the UK, including in London, Manchester, Cardiff, Glasgow and Belfast to continue growing in areas they are doing well in already. Our Local Digital Index offers government a ready-made metric for assessing progress in this area.  

The Industrial Strategy also sets out the institutional architecture for its implementation and governance, including establishing the Industrial Strategy Council as a statutory body with a full secretariat and the use of task and finish-style groups to tackle major policy issues, which techUK recommended, as well as measures to work with devolved and local government to ensure growth reaches all parts of the UK. 


Has it delivered? 

The Industrial Strategy includes a great number of announcements first made in other government publications, from R&D funding to planning reform, but nevertheless it is a significant document that provides a framework for the delivery of economic policy over the next ten years. It states what the government will prioritise, immediate measures to do so, how they will work in future to deliver these plans and then the criteria for their success and failure.  

On the one hand, therefore, this can be seen as a comprehensive strategy, one that ties together existing government programmes into a new narrative and offers paths forward, at least for the winners it has picked, in every area it promised to, as well as the beginnings of a plan for how these can be implemented.  

However, perhaps inevitably for a Strategy of this size and breadth, there are concerning omissions. Notably, action on energy costs appears to be limited to energy-intensive manufacturing industries through a new British Industrial Competitiveness Scheme, with a further consultation on eligibility criteria to follow. We strongly urge that this scheme be extended to foundational digital infrastructure including telecoms and data centres.  

Likewise, the findings of the Technology Adoption Review (also published today) are broad in identifying problems, but light on practical support for widespread, basic digital adoption. Whilst we know this is a government priority as outlined in the Digital Inclusion Action Plan, it is still unclear whether the measures announced for technology adoption go far enough in creating a coherent and unified approach to this vital task. 

Politically, the White Paper sets out a more explicit interventionist role for the state, with announcements that the government will instruct bodies such as UKRI to direct investment into specific sectors (the ‘IS-8’) and into the regions where these sectors are already strong. The Strategy acknowledges previous failures, and rejects an ‘absent, regulatory state’ that limits business, instead offering for the state to be a more active partner. Elsewhere, the Strategy commits to ‘using public finance to help the IS-8 access critical supply-chain inputs or develop critical capabilities’, indicating an appetite for the state to take on a stronger role in protecting strategic business sectors.  

The strategy also focuses on providing high-wage, high-quality employment across the UK, recognising that tech and the other seven key growth sectors provide above-average wages and ultimately better living standards for their workers.  

In conclusion, whilst drawing on numerous existing initiatives, this Strategy does represent a different approach from previous iterations, a vision that is predicated on a new partnership model between government and industry. This is touched on lightly in the final section of the White Paper, which states that the Strategy heralds ‘a step-change in how Government works with business, shares information, and offers support and incentives’.  

This relationship will need to be actively created and maintained by government in a turbulent economic period, and the role for trade associations such as techUK in collating and representing the voice of industry is more important than ever. We look forward to working with government on this going forward to ensure that it can deliver its vision in lockstep with the industry that will drive so much of the investment, innovation, and infrastructure that the Strategy will need to succeed. 

What’s still to come?  

This is not the full extent of the Government’s offer on growth and competitiveness. Upcoming publications include the Trade Strategy, expected as early as this week, and dedicated publications on SME digital adoption and a wider strategy for small businesses confirmed in the Spending Review. 

Our next steps 

techUK will be providing a full response and analysis of today’s announcements in due course, which will be uploaded to our Industrial Strategy Hub. For members, we are also hosting a webinar on Friday 27 June to discuss the strategy in more detail. 

Otherwise, techUK looks forward to working closely with the government to implement the vision of the Industrial Strategy, and to growing the tech economy across the UK 


Major announcements 

Energy: there were major announcements on reducing energy costs for UK companies. There are outstanding questions though as to whether data centres will benefit from these measures: 

  • The British Industry Supercharger to provide relief for energy-intensive companies 
  • A new British Industrial Competitiveness Scheme to reduce electricity costs by c.£35-40/MWh up to 2030 and which will be consulted upon to decide who is included. 
  • Support for the Energy-Intensive Industries Compensation Scheme to support energy efficiency, decarbonisation, and technological innovation, with a review to be conducted by the end of 2025 on how energy-intensive industries will be supported when CBAM is introduced. 
  • A new ‘Connections Accelerator Service’ will provide support connecting to the grid for in-demand projects. 
  • Trade: the full Trade Strategy will be launched later down the line, but the Industrial Strategy includes measures to support UK exports in the key growth sectors with domestic aid, deepen collaboration with international partners such as India and Japan, and negotiate more free and fair trade partnerships to create opportunities for British firms overseas. 

Economic and national security: the government have recognised our call for a more resilient economy with several measures to promote UK security: 

  • An expansion of the Cyber Essentials accreditation scheme across the UK and expanded investment in the next generation of secure chips to eliminate cyber vulnerabilities at source.  techUK called for cyber resilience to be explicitly recognised as essential in the Industrial Strategy.  
  • Greater support for tech procurement, including a mandate for the National Wealth Fund to look at dual use technologies 
  • The establishment of a Supply Chain Centre to study UK supply chains and provide feedback on increasing resilience 

Expanding access to finance: the government will continue with the Mansion House Reforms that techUK has supported. The government will also use the National Wealth Fund, British Business Bank and UK Export Finance to support business growth and UK scaleups 

Supporting innovation: the government will provide greater direction for R&D into priority areas. The government have also adopted techUK’s recommendation to adopt a focus on business commercialisation, including SME digital adoption through Made Smarter and creation of a dedicated scheme for Professional and Business Services.  

Skills: the government has adopted many of techUK’s asks on skills by offering a joined up talent pipeline from skills to industry to enable more apprenticeships and work experience, implement a Lifelong Learning Entitlement and introduce £187 Million for the TechFirst technology skills package to plug skills gaps. The government has also announced measures to improve AI skills amongst the general population and promises a review from Skills England on how to do this.  

Data: the government have also adopted techUK’s recommendations to make make the UK’s data framework simpler and easier through easier regulation and £36 million for new smart data schemes. The government have also announced their plans for the National Data Library, which techUK has supported.  

Regulation: techUK’s recommendation that regulation be made simpler and easier, in recognition of the fact that regulation does not keep up with innovation, has been wholeheartedly embraced, with the government promising to further the work of RIO and target a 25% reduction in regulatory burden this Parliament.  

Infrastructure: the government has already launched its 10 year Infrastructure Strategy (techUK’s insight on that can be found here), but the government has built on this by accepting techUK recommendations such as the creation of digital software for use during planning applications.  

Tax: the government remains open to reviewing taxes ahead of the Budget in 2025 

Cities and clusters: the government has followed techUK’s recommendation that clusters and city regions should build on their existing strengths and provides the means for them to do this via the new Strategic Sites Accelerator, to support planning approvals and measures to ensure each UK growth institution works with city regions to promote the 8 key growth sectors. 

Business partnership:  

  • The government has outlined how it will offer what it sees as genuine partnership with business, putting the Industrial Strategy Council on a statutory footing and creating a secretariat for the Council to use.  
  • The government has accepted techUK’s recommendation that the Strategy will be a living document that will evolve over 10 years 
  • The government have also adopted techUK’s recommendation that ‘task and finish’ groups be formed on an ad-hoc basis to tackle specific economic issues 
  • The government will look to train Civil Servants in business more deeply through a new Business Academy. This will augment the Business Growth Service launching in Summer 2025 
  • For SMEs, the government has adopted techUK’s recommendation to fight late payments by instituting a Fair Payment Code and banning companies from bidding from procurement if they consistently pay subcontractors late. 

For more information, please contact:

Antony Walker

Antony Walker

Deputy CEO, techUK

Edward Emerson

Edward Emerson

Head of Digital Economy, techUK

Mia Haffety

Mia Haffety

Policy Manager - Digital Economy, techUK

Archie Breare

Archie Breare

Policy Manager - Skills & Digital Economy, techUK

techUK's Policy and Public Affairs Programme activities

techUK helps our members understand, engage and influence the development of digital and tech policy in the UK and beyond. We support our members to understand some of the most complex and thorny policy questions that confront our sector. Visit the programme page here.

 

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Meet the team 

Antony Walker

Antony Walker

Deputy CEO, techUK

Alice Campbell

Alice Campbell

Head of Public Affairs, techUK

Edward Emerson

Edward Emerson

Head of Digital Economy, techUK

Samiah Anderson

Samiah Anderson

Head of Digital Regulation, techUK

Audre Verseckaite

Audre Verseckaite

Senior Policy Manager, Data & AI, techUK

Mia Haffety

Mia Haffety

Policy Manager - Digital Economy, techUK

Archie Breare

Archie Breare

Policy Manager - Skills & Digital Economy, techUK

Daniella Bennett Remington

Daniella Bennett Remington

Policy Manager - Digital Regulation, techUK

Oliver Alderson

Oliver Alderson

Junior Policy Manager, techUK

Tess Newton

Team Assistant, Policy and Public Affairs, techUK

 

 

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Authors

Antony Walker

Antony Walker

Deputy CEO, techUK

 Edward Emerson

Edward Emerson

Head of Digital Economy, techUK

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.

Email:[email protected]
 
LinkedIn:https://www.linkedin.com/in/edward-emerson-009189183

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Archie Breare

Archie Breare

Policy Manager - Skills & Digital Economy, techUK

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.

Email:
[email protected]
LinkedIn:
linkedin.com/in/archie-breare-512346230

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Mia Haffety

Mia Haffety

Policy Manager - Digital Economy, techUK

Mia joined techUK in September 2023.

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.

Email:
[email protected]

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