Labours Industrial Strategy Targets Eight High Growth Sectors to Transform British Economy

In a significant policy announcement, Sir Keir Starmer has unveiled Labour’s comprehensive industrial strategy, marking the first such initiative since Theresa May’s government. The 160-page document outlines an ambitious ten-year plan focusing on eight high-growth sectors, collectively representing 32 per cent of the British economy.

The strategy, dubbed IS-8, encompasses advanced manufacturing, clean energy industries, creative industries, defence, digital and technologies, financial services, life sciences, and professional and business services. A 16-member independent advisory council will oversee implementation, monitoring crucial metrics including business investment, gross value added, employment figures, wages, productivity growth and export performance.

Central to the manufacturing sector plan is a bold target to nearly double annual business investment from £21 billion to £39 billion by 2035. The government aims to address the challenge of high electricity costs facing British manufacturers through a new industrial competitiveness scheme, offering substantial relief from 2027.

The clean energy initiative sets ambitious goals to double sector investment to exceed £30 billion annually by 2035. Key focus areas include wind power, nuclear development, fusion energy, carbon capture, hydrogen production and heat pump technology. A notable £1 billion clean energy supply chain fund will be established under Great British Energy, the newly formed state-owned enterprise.

Digital and technology sectors receive particular attention, with the government setting its sights on nurturing Britain’s first trillion-dollar technology company. The strategy acknowledges current challenges where promising start-ups often succumb to American acquisitions or choose US listings for expansion.

Professional and business services, representing a crucial component of the UK economy, target an impressive investment increase from £30 billion to £65 billion by 2025. The plan emphasises regional development, with significant investment allocated to create sector hubs across major metropolitan areas including Liverpool, Manchester, and Edinburgh.