The UK Modern Industrial Strategy

March 4, 2025

This roundtable examined the government’s Invest 2035 green paper and the role that industrial strategy can play in delivering sustainable, long-term economic growth. As the UK seeks to strengthen its international competitiveness while meeting net zero commitments, the discussion explored how ESG considerations can be integrated into a modern industrial framework. Participants also considered the importance of policy stability, regional development and innovation in supporting the transition to a more resilient economy.

Key contributors:

  • Chi Onwurah MP, Chair of the House of Commons Science, Innovation and Technology Committee
  • Esin Serin, Policy Fellow at the LSE Grantham Institute
  • Dan Marks, Research Fellow at RUSI
  • Martin Martinoff, Innovation Lead at Innovate UK.

Summary

Participants argued that while clean energy has been identified as a priority sector, a broader framework is needed to embed long-term considerations such as net zero, economic security, supply chain resilience and regional prosperity across industrial policy. Discussion focused on the importance of creating stable conditions for investment, particularly in high-potential sectors including offshore wind and advanced clean technologies. The conversation also highlighted the need to strengthen links between research, innovation and commercialisation, ensuring that UK-developed technologies can scale domestically rather than overseas. Alongside this, participants stressed that a successful transition will require realistic planning around workforce changes, regional strengths and supply chain vulnerabilities, recognising that industrial transformation inevitably involves difficult trade-offs.

Recommendations

  • Ensure long-term policy stability with cross-party consensus to prevent investment uncertainty. 
  • Base the industrial strategy on realistic UK capabilities, not overambitious projections. 
  • Focus public investment on high-impact sectors like offshore wind and carbon capture.
  • Align skills development with regional strengths to avoid mismatched reskilling efforts.
  • Balance mandates with financial support to prevent high costs for businesses. 
  • Use the UK’s strength in finance, AI, and automation to drive green industrial innovation. 
  • Recognise that industrial transitions are volatile and plan for inevitable disruptions.