UK Government Unveils £2 Billion Industrial Strategy to Power Advanced Manufacturing and Automotive Growth

Business and Trade Secretary Jonathan Reynolds has announced a bold new chapter for the UK’s advanced manufacturing sector, unveiling a 10-year Industrial Strategy focused on driving investment, innovation, and job creation. Speaking to over 300 industry leaders at the SMMT International Automotive Summit in London, Reynolds outlined a comprehensive funding package designed to ensure the UK remains a global leader in sectors such as automotive, aerospace, and clean energy.

The plan features a £2 billion commitment to the automotive industry through 2030, with a further £500 million pledged through to 2035. Central to this strategy is DRIVE35 (Driving Research and Investment in Vehicle Electrification)—a new initiative aimed at accelerating the development of zero-emission vehicles and securing tens of thousands of high-skilled jobs.

Reynolds framed the plan as a foundational step in creating long-term stability and global competitiveness. “Economic growth is our number one priority,” he said. “By funding our world-leading advanced manufacturing sector, we are creating the right conditions for increased investment, bringing growth, jobs, and opportunities to every part of the UK.”

The strategy also promises wide-ranging support across adjacent sectors:

• £2.3 billion over 10 years to extend the Aerospace Technology Institute Programme
• £625 million for construction skills training to build a workforce fit for advanced manufacturing
• £452 million through 2030 to boost Battery Innovation and domestic production

The announcement comes as the UK strengthens its trade position, with Reynolds highlighting deals that benefit exporters—most notably a landmark tariff-reduction agreement with the United States, alongside recent agreements with the EU and India. These efforts support the UK’s upcoming Trade Strategy, designed to create smoother market access for UK-made vehicles—80% of which are exported.

The automotive sector welcomed the announcement. Mike Hawes, CEO of the Society of Motor Manufacturers and Traders (SMMT), described the plan as “the framework the sector has long sought.” However, he stressed urgency: “Implementation must be swift. The number one priority must be addressing the UK’s high energy costs.”

Other industry leaders also backed the strategy. Stuart Simpson, CEO of Vertical Aerospace, called it “essential for the UK’s long-term economic growth,” while Carl Ennis, CEO of Siemens UK, praised its focus on advanced technologies and long-term certainty.

The new Industrial Strategy aims to position the UK as the best place in the world for manufacturing investment—delivering innovation, clean growth, and future-ready industries.