Industrial Strategy: Made Smarter will help 5,500 more SME manufacturers
24 June 2025 
Around 5,500 SME manufacturers in England will be helped to adopt advanced industrial technologies as part of the government’s long-awaited Industrial Strategy, which has now been published. The 160-page main document lays out a raft of measures aimed at making Britain the best place to invest in, and grow, a business.
The modern Industrial Strategy sets out a ten-year plan to boost investment and create good skilled jobs in UK industry. It focuses on eight sectors where the UK is already strong have potential for faster growth, including advanced manufacturing and digital technologies. Highlights of the plan include:
- investing an extra £1.2bn each year in skills by 2028-29, delivering more opportunities to learn and earn in high-growth sectors, including new short skills courses funded by the Growth and Skills Levy, and skills packages targeted at defence digital and engineering;
- supporting 1.1 million new well-paid jobs over the next decade;
- slashing the electricity bills of more than 7,000 energy-intensive British businesses by up to 25% from 2027;
- unlocking billions in finance for innovative business, especially SMEs by increasing British Business Bank financial capacity to £25.6bn, attracting tens of billions of pounds more in private capital;
- reducing regulatory burdens by cutting the administrative costs of regulation for business by 25% and reducing the number of regulators;
- boosting R&D spending to £22.6bn per year by 2029-30 to drive innovation in the eight earmarked sectors, with more than £2bn for AI over the period of the Spending Review, and £2.8bn for advanced manufacturing over the next ten years, potentially leveraging billions more from private investors;
- attracting elite global talent to key sectors via visa and migration reforms, and a new Global Talent Taskforce;
- deepening economic and industrial collaboration with partner countries, building on recent deals with the US, India and the EU, and the UK’s Industrial Strategy Partnership with Japan;
- centralising government support in one place through the Business Growth Service;
- cutting planning timelines and costs for developers by hiring more planners, streamlining pre-application requirements and combining environmental obligations, and removing burdens on businesses;
- revolutionising public procurement and reducing barriers for new entrants and SMEs to bolster domestic competitiveness; and
- supporting city regions and clusters by increasing the supply of investible sites through a new £600m Strategic Sites Accelerator, enhanced regional support from the Office for Investment, National Wealth Fund, and the British Business Bank.
Up to £99m more funding will be made available for the Made Smarter Adoption programme from 2026 to help a further 5,500 SME manufacturers in England to adopt new technologies. The model will also be applied in a new scheme for the professional and business services sector. The Government will also launch demonstration programmes to enhance technology confidence and use across businesses – for example, by establishing new adoption hubs for robotics.
“This is a landmark moment for SME manufacturing,” says Donna Edwards, programme director for Made Smarter North West. “The Government’s commitment to expand the Made Smarter Adoption Programme as part of the Advanced Manufacturing Sector Deal, is a powerful recognition of the critical role our makers play in driving innovation, growth and sustainability.” Since the scheme was launched in 2019, it has provided thousands of SMEs with expert advice, training, and funding for internships and digital projects start their digital journey.
“The new £99m commitment, highlighted in the Industrial Strategy, gives us optimism for the future,” she adds. “While we await further detail on the proposals, this announcement is a huge vote of confidence in SME manufacturing and the impact of Made Smarter. It gives businesses the confidence to invest in technology, people and long-term transformation.”
Another announcement is the creation of a Sovereign AI Unit, with up to £500m to boost the UK’s stake in frontline AI. It will work with the British Business Bank to make investments to build the UK’s AI capabilities. An Industrial Strategy AI Adoption Fund will facilitate the development of AI applications in high-growth potential firms in the earmarked sectors.
UK Research and Innovation (UKRI) will increase support for the eight chosen sectors by pivoting its programmes and budgets towards research and innovation priorities in these sectors. Innovate UK will play a central role in accelerating the commercialisation of new technologies, and the Catapult Network – which Innovate UK funds – will also focus on the priorities laid out in the Industrial Strategy.
According to prime minister, Keir Starmer, the Industrial Strategy “marks a turning point for Britain’s economy and a clear break from the short-termism and sticking plasters of the past. In an era of global economic instability, it delivers the long-term certainty and direction British businesses need to invest, innovate and create good jobs that put more money in people’s pockets as part of the plan for change.”
“Our Modern Industrial Strategy will ensure the UK is the best country to invest and do business, delivering economic growth that puts more money in people’s pockets and pays for our NHS, schools and military,” adds business and trade secretary, Jonathan Reynolds. “Not only does this Strategy prioritise investment to attract billions for new business sites, cutting-edge research, and better transport links, it will also make our industrial electricity prices more competitive.
“Tackling energy costs and fixing skills has been the single biggest ask of us from businesses and the greatest challenge they’ve faced – this government has listened, and now we’re taking the bold action needed,” Reynolds continues. “Government and business working hand-in-hand to make working people better of is what this Government promised and what we will deliver.”
Commenting on the publication of the industrial strategy, Stephen Phipson, CEO of Make UK, says: “Today is one of the most important days for British industry in a generation. In launching the modern Industrial Strategy white paper, Jonathan Reynolds has demonstrated the government’s commitment to honour its promises and tackle the major structural problems that have blighted UK manufacturing for so long and we congratulate him for doing so.
“Make UK has led the campaign for a new industrial strategy for many years, highlighting the three major challenges that were diminishing our competitiveness, hampering growth and frustrating productivity gains: a skills crisis, crippling energy costs and, an inability to access capital for new British innovators.
“The government has listened and the Secretary of State has acted decisively with a joined up strategy which reflects a wider commitment from the Prime Minister and Cabinet alike,” Phipson says. “The strategy announced today sets out comprehensive and well-funded plans to address all three of these structural failings. Clearly there is much to do as we move towards implementation but, this will send a message across the country and around the world that Britain is back in business.”
A cornerstone of the government’s strategy are the measures designed to tackle two of the biggest barriers facing UK industry – high electricity prices, and the long wait for grid connections. Under the proposals, more than 7,000 energy-intensive British businesses will see their electricity bills slashed by up to 25% from 2027. A new British Industrial Competitiveness Scheme will cut their electricity costs by up to £40/MWh. These businesses, which support more than 300,000 skilled jobs, will be exempt from paying levies such as the Renewables Obligation, Feed-in Tariffs and the Capacity Market – helping to level the playing field and make them more internationally competitive.
The government is also increasing its support for the most energy-intensive firms – in industries such as steel, chemicals and glass – by covering more of the electricity network charges these businesses normally have to pay through the British Industry Supercharger. They currently get a 60% discount on those charges but, from 2026, that will rise to 90%.
To ensure that businesses can grow and hire without delay, the government will also deliver a new Connections Accelerator Service to streamline grid access for major investment projects – including prioritising those that create high-quality jobs and deliver significant economic benefits.
