UK to issue 10-year industrial strategy aimed at boosting growth

LONDON (Reuters) -Britain is poised to publish a 10-year, multibillion-pound industrial strategy next week aimed at backing priority sectors, creating jobs and driving long-term economic growth.

Prime Minister Keir Starmer's government has been working on a blueprint for the next decade as part of its wider "Plan for Change", under which it seeks to overhaul the country's skills system, support innovation, and channel fresh investment into high-growth areas.

Britain has so far pledged more than 1.5 billion pounds ($2 billion) to be delivered through a series of targeted government funds to support skills development, creative industries and sport.

Announcing on Sunday 275 million pounds to support the training of thousands in roles such as engineering and defence roles, business minister Jonathan Reynolds said the strategy would be "powered by investing in British people."

"It will help transform our skills system to end the overreliance on foreign labour, and ensure British workers can secure good, well-paid jobs in the industries of tomorrow."

Alex Veitch, director of policy at the British Chambers of Commerce, welcomed Reynolds' pledge. 

"The extra cash investment for training in key sectors, such as defence and engineering, has the potential to be a real springboard for growth," Veitch said.

The government has previously said it would radically change its approach to defence to address threats from Russia, nuclear risks and cyber-attacks.

In February, Starmer pledged the largest sustained increase in British defence spending since the end of the Cold War, in response to U.S. President Donald Trump's insistence that Europe take more responsibility for its own security.

OTHER PLEDGES

The government has also pledged a 380 million-pound boost for creative industries from film to video games, and more than 900 million pounds to stage major sporting events and upgrade grassroots facilities.

But business groups say high energy costs remain a serious threat to UK industry and have urged ministers to act.

A June report from manufacturing association Make UK warned that without government intervention, Britain's energy-intensive sectors could face long-term decline. It called for measures such as network cost reform, targeted relief schemes and more predictable energy pricing.

Finance minister Rachel Reeves acknowledged those pressures in her June 12 spending review, which set out departmental budgets and outlined more than 10 billion pounds of investment in green infrastructure and industrial decarbonisation.

She said the government would support energy-efficiency upgrades and back the development of low-carbon technologies and confirmed the creation of a British Industrial Strategy Council to oversee the delivery of the government's growth plans.

($1 = 0.7435 pounds)

(Reporting by Sam Tabahriti; Editing by Hugh Lawson)