On 23 June 2025, the UK government published The UK Modern Industrial Strategy, a comprehensive, 10-year plan to boost growth, investment, and job creation. At the heart of the strategy, you’ll find the he IS-8, the sectors that will determine our economic and technological future. They are the foundation for what’s next and the planning that will continue our progress toward change and transformation. The strategy was developed to leverage the UK’s existing strengths, maintain our competitive edge globally, and address barriers to progress including the skills shortage. Here is an outline of the key points for understanding the future of the UK’s skills strategy.
Who are the IS-8?
- Advanced Manufacturing
- Clean Energy Industries
- Creative Industries
- Defence
- Digital and Technologies
- Financial Services
- Life Sciences
- Professional and Business Services
What skills are prioritised in the strategy?
The Industrial Strategy focuses on the need in invest on promoting the technical and soft skills the UK workforce needs to drive economic progress. Green skills, AI & technology skills, leadership abilities, and strategic planning/ project management are a focus. £1.2 billion of additional investment in skills per year by 2028-29 is also included. Not surprisingly, upskilling and reskilling will be key in delivering this transformation with numerous initiatives outlined including investment in skills packages across TechFirst, Engineering, Defence, and Construction. There are also provisions for 16-19 year olds, lifelong learning, and a new Growth & Skills Levy to name a few.
If you’d like a clear, concise, and insightful overview of the Modern Industrial strategy, download our Executive Summary.
What about investment in defence?
The UK government will invest in the defence sector to make the UK a leading tech-enabled defence power. Plans include backing UK-based businesses to improve defence procurement and acquisition and plan to work with industry to deliver a defence skills package, including new Technical Colleges and funding for courses for defence-related skills. Investing in defence sector skills and educational programmes is core to the new strategy.
Next steps for AI and innovation
The UK ranked fifth overall in the 2024 edition of the Global Innovation Index and third for knowledge impact, but it only ranked twelfth in knowledge diffusion. Barriers for tech implementation include financial constraints, skills gaps, reorganisation costs, resistance to change, and uncertainty on policy and regulations.
Training is clearly an important route to tech adoption and increased productivity. The government will work with industry to upskill 7.5 million workers with the skills to use AI in their roles by 2030. Industry partnerships include Accenture, Amazon, Barclays, BT, Google, Intuit, IBM, Microsoft, Sage, Salesforce, and SAS.
The UK ranked 5th in the 2024 Global Innovation Index
Urban and regional strategy
The strategy aims to identify and accelerate the opportunities in UK cities and regions e.g. Belfast, Bristol, Cardiff, Edinburgh, Glasgow, Greater Manchester, Liverpool, the North East, South Yorkshire, the West Midlands, and West Yorkshire. This will not only increase the competitiveness of the IS-8, but strengthen economic resilience with well-paid jobs, thriving businesses and renewed communities.
Industry clusters are also in the strategy:
- Plymouth for maritime autonomy
- North Wales and Northern Ireland for aerospace
- The Humber and the Highlands for Clean Energy Industries.
Scotland
Looking more closely at the detail, Glasgow is competitive in Defence and Advanced Manufacturing; Edinburgh has the largest Financial Services sector in the UK outside London, and Dundee is a rapidly growing Life Sciences cluster. In Aberdeen, the government will fund skills support through a new regional skills pilot in Clean Energy Industries.
Wales
Is an Advanced Manufacturing cluster, from aeroplane wing production in North Wales to compound semiconductor design and manufacturing in the South, the top five Defence primes all have a presence in Wales. The UK government will invest in a new Centre for Doctoral Training, led by Swansea University.
Northern Ireland
Employment in Northern Ireland’s Advanced Manufacturing sector has grown more than four times faster than the UK average with a thriving defence sector. Northern Ireland is home to over 100 Cybersecurity businesses, supporting around 2,750 jobs with an average salary of £53,300. Central to this is the Cyber-AI Hub, a joint initiative between the UK Government and Queen’s University, Belfast, which promotes collaboration between academia, the cybersecurity sector, and other industries, including Defence, Aerospace, and Financial Services.
Final thoughts
The Industrial strategy does more than set our a skills strategy with the power to define our industrial future. It also details ambitions to make it easier to do business with UK companies, enable growth in cities and regional clusters, transform our highest-potential sectors, and build business partnerships to support a more agile state. The agenda is a powerful one and we’ll be looking at different aspects of it over the coming months.
If you’d like to discuss the strategy and its potential impact on your organisation, get in touch
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