The Governments Industrial Strategy: What This Means for Manufacturers

 On 23 June, the government announced what many in UK manufacturing have been waiting years to hear. For the first time since 2017, a fresh industrial strategy is on the table. Not only will it cut energy costs for manufacturers by 25%, but it also includes a £4 billion injection into the British Business Bank. This is a move set to significantly improve access to finance for businesses across the country.

In our article, we will cover how this new strategy can benefit manufacturing facilities across the UK.

From 2027, over 7,000 manufacturers that are electricity-intensive can expect to see their overall electricity bills cut by up to 25%, all thanks to the British Industrial Competitiveness Scheme. In return, the playing field in which UK manufacturers compete in will be levelled, making it easier to manufacture aside global markets.

Once this scheme comes into play, eligible manufacturers can expect to see their electricity bills decrease by 25%, primarily through exemptions from various environmental and policy levies which are typically seen in UK energy prices. With this discount implemented, there will be an ease on cost pressures, a boost in competitiveness and also help safeguard jobs in industries which are vital to the UK’s economy.

With the British Business Bank’s budget increasing to £25.6?billion, the new funding represents a valuable opportunity for fastener manufacturers to invest in areas that are often held back by limited capital. Whether it is upgrading to automated production lines, adopting low-carbon or energy-efficient processes, improving overall productivity, or bringing more operations back to the UK through reshoring, this expanded financial support can help unlock growth and long-term resilience.

For manufacturers looking to modernise their operations, reduce costs, or meet stricter sustainability targets, improved access to growth capital could make the difference between standing still and scaling up.

Over the next five years, advanced manufacturing businesses across the UK can look forward to a focused and meaningful boost in support. Backed by significant government investment, this initiative is designed to help manufacturers strengthen their supply chains, adopt green technologies, and accelerate progress towards net-zero targets. It also supports the development of next-generation manufacturing capabilities – from smart factories and digitalisation to cutting-edge materials and process innovation.

For businesses navigating rising costs, sustainability demands, and global competition, this long-term support offers a genuine chance to futureproof operations, explore new markets, and lead the transition to cleaner, more resilient manufacturing.

This new Industrial Strategy feels like a much-needed step in the right direction. After years of uncertainty, the government is finally putting real backing behind UK manufacturing, overall helping to ease energy costs, improve access to finance, and support long-term growth.

For businesses like ours, it opens the door to invest in smarter, greener ways of working, strengthen supply chains, and build resilience for the future. To discover how we will be implementing these benefits, talk to our team today.