Marvin OnumonuThe Government has launched a new Industrial Strategy aimed at driving growth and creating jobs in Wales.
The plan set out support for key sectors like aerospace in the North and compound semiconductors in the South.
The Government said more than 7,000 UK businesses would see their electricity bills cut by up to 25%, with a new British industrial competitiveness scheme set to reduce costs by up to £40 per megawatt hour from 2027.
Over 300,000 jobs in sectors like automotive, aerospace and chemicals are expected to benefit, with firms exempt from levies such as the renewables obligation, feed-in tariffs and the capacity market.
The Government also planned to consult on eligibility for the scheme.
From 2026, the Government will increase support for the most energy-intensive firms such as steel, chemicals and glass, raising discounts on electricity network charges from 60% to 90% under the British industry supercharger.
The strategy is a 10-year plan to make it quicker, easier and cheaper to do business in the UK, aiming to create 1.1 million jobs.
Wales is set to benefit from more than £4bn for the advanced manufacturing sector over five years. Airbus is already based in Broughton in the North.
Additionally, the Government will set up a centre for doctoral training in semiconductors led by Swansea University in the South, and a defence growth deal cluster to build on Wales’s existing strengths.
A new British business bank champion for the Cardiff Capital Region will aim to connect investors with local businesses.
There is also £30m for a local innovation partnerships fund to work with the Welsh government and Innovate UK.
The National Wealth Fund will work with the Development Bank of Wales to secure investment projects.
There is a new £600m strategic sites accelerator and more regional support from the office for investment, National Wealth Fund and British business bank.
Prime Minister Keir Starmer said: “This 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.
“This is how we power Britain’s future – by backing the sectors where we lead, removing the barriers that hold us back, and setting out a clear path to build a stronger economy that works for working people. Our message is clear – Britain is back and open for business.”
Secretary of State for Wales Jo Stevens said: “Wales has huge potential and our government’s Industrial Strategy will harness the strengths of our businesses and workforce to drive growth and create jobs.
“The strategy will support key sectors like aerospace and compound semiconductors while developing industries of the future like floating offshore wind where Wales is well-placed to be a world leader.
“Our modern Industrial Strategy is built to last and make Wales one of the best places to invest and do business. Working alongside Welsh Government we will boost growth, raise wages and create wealth across our country.”
Business and Trade Secretary Jonathan Reynolds said: “We’ve said from day one Britain is back in business under this government, and the £100 billion of investment we’ve secured in the past year shows our Plan for Change is already delivering for working people.
“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.
“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 energy prices globally competitive.”
Reynolds added: “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.
“Government and business working hand in hand to make working people better of is what this Government promised and what we will deliver.”
Reaction:
Sarah Williams-Gardener, chair of Fintech Wales:
“We are delighted to see financial services recognised as a key sector in this Industrial Strategy.
“We look forward to working closely with the Government to help unlock the sector’s full potential.
“The emphasis on AI and the compute power required to support its development is particularly welcome, as we begin to see generative AI driving innovation across financial services—empowering both providers and customers through the next generation of digital banking platforms.”
Frank Holmes, founding partner of Gambit Corporate Finance and chair of the Cardiff Capital Region Investment Board:
“Today’s announcements mark a timely and important shift towards a connected, strategic approach to economic growth.
“The renewed focus on industrial strategy and SME finance speaks directly to the opportunities we are unlocking in the Cardiff Capital Region.
“We have backed innovative and scalable businesses like Whisper TV, showcasing how tailored regional finance can drive job creation, innovation and global reach.
“The UK’s commitment to extending SME access to finance aligns perfectly with the ecosystem we are building in CCR as a proven delivery partner and a model for regional economic development.”
Louise Harris, CEO of Tramshed Tech in Cardiff:
“The launch of the UK Government’s Industrial Strategy is a pivotal moment for our tech and innovation ecosystem.
“By aligning local strengths with national ambition, this strategy provides a powerful platform for Welsh businesses to grow, attract investment and lead in emerging sectors such as technology, advanced manufacturing, and creative industries.
“This strategy recognises that innovation isn’t just about technology in isolation – it’s about creating sustainable, high-quality jobs while tackling real-world challenges.
“This approach will create the perfect environment for startups and scale-ups to thrive, knowing they have both the infrastructure, skills and strategic support to take their innovations from Wales to the world.”
