The UK’s new 10-year Modern Industrial Strategy (published June 2025) is framed as a long-term commitment to drive business investment, innovation, and growth. But what does it actually offer and why should local regions like Sussex and Surrey pay attention?
What’s in the plan?
Eight ‘IS-8’ priority sectors are identified as the future of the economy, including advanced manufacturing, clean energy, digital & technology, creative industries, life sciences, defence, financial services and professional services.
Key national commitments include:
• £4.3 billion in funding for advanced manufacturing—including £2.8 billion for R&D over five years to bolster innovation and automation.
• Doubling clean energy investment with a goal to exceed £30 billion per year by 2035.
• Cutting electricity costs by up to 25% for around 7,000 energy-intensive firms (like manufacturing and aerospace) from 2027, backed by a £2 billion investment over four years.
• £275 million dedicated to technical training and apprenticeships across England—targeting upskilling in engineering, AI, digital manufacturing, and technical colleges.
• A pathway to create 1.1 million ‘good, well-paying jobs’ tied to these strategic sectors.
• Public R&D spending set to increase to £22.6 billion annually by 2029–30, with a goal of securing more private-sector co-investment.
Who will be affected – and how?
Local employers stand to benefit from lower energy costs, direct R&D funding, and clearer regulatory signals, especially those in manufacturing, energy, life sciences and technology.
Training providers and colleges gain from targeted funding, new technical short courses and partnerships for employer-led training.
Students and apprentices across Sussex and Surrey could see better pathways into emerging sectors, supported by investment in local skills and infrastructure.
Why it matters and what to watch:
This strategy matters because it could bring real, regional investment into sectors where local talent and businesses already have potential. It could connect employer needs directly with skills pathways, helping us tailor programmes to real-world demand. It could provide energy cost relief for intensive sectors – reducing overheads and enabling competitiveness. And it could boost innovation through dedicated R&D funds and growing the tech ecosystem.
For us at Sussex & Surrey Institute of Technology, the strategy aligns with our Chichester College Group (CCG) mission – changing lives through learning – by spotlighting technical education, employer involvement and building regional capacity.
Barriers to success
While the Industrial Strategy sets out a bold vision, there are still questions about delivery. Previous national strategies have struggled to maintain momentum and businesses will want to see consistency and follow-through over the full 10 years.
Where it must deliver
For our region, success will depend on how well local partners can mobilise – using Investment Zones, regional growth funds and employer-led projects to turn the strategy into tangible opportunities for people and businesses. That means aligning investment with the real needs of employers, creating training routes that match future jobs and making sure funding actually reaches the communities and sectors that can benefit most.
What do you think? Could this strategy help unlock the potential in Sussex and Surrey? What specific outcomes would you like to see – be it in training, R&D, energy or employer collaboration?
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