**Welsh Businesses Set to Reap Benefits Under New UK Industrial Strategy and Energy Cost Cuts**
The UK Government has unveiled a sweeping new industrial strategy aimed at driving economic growth and slashing energy bills for thousands of businesses, with companies across Wales set to receive a significant boost. Among the headline measures is a commitment to cut electricity costs for energy-intensive industries by up to 25%, a move intended to improve the UK’s competitiveness and encourage further investment.
Under the newly announced British Industrial Competitiveness Scheme, over 7,000 businesses nationwide – including major Welsh employers – will benefit from reduced electricity prices by as much as £40 per megawatt hour. Businesses such as the Port Talbot steelworks, which is currently preparing for the installation of a state-of-the-art electric arc furnace, are expected to see tangible benefits from these changes. UK Business Secretary Jonathan Reynolds confirmed that energy-intensive manufacturers in Wales, from steelworks to chemical plants, would be part of this new scheme.
The strategy promises broader influence beyond energy reform, declaring ambitions to unlock billions of pounds in investment, foster economic growth, and create tens of thousands of highly skilled jobs in Wales over the next decade. Such support arrives at a crucial moment, given the longstanding complaint from British manufacturers about paying among the highest industrial energy prices in Europe.
A range of additional measures are included to support Wales’s economic strengths. More than £4 billion is earmarked for advanced manufacturing in the UK over five years, while Swansea University is to lead a new doctoral training centre for semiconductors. The creation of a defence growth cluster, extra funding for local innovation partnerships, and further capital to accelerate the development of strategic investment sites are also part of the government’s plan for bolstering Welsh economic activity.
Some initiatives are designed to make Wales more attractive to both domestic and global investors. For instance, a new British Business Bank champion will work to connect regional firms in the Cardiff Capital Region with much-needed investment, while the National Wealth Fund is set to partner with the Development Bank of Wales to identify high-potential projects for funding.
The government’s industrial strategy is pitched as a ten-year vision designed to make it “quicker, easier and cheaper to do business,” with the explicit goal of spurring businesses to invest and generate quality employment. Beyond energy reform, the action plan pledges to simplify the regulatory landscape, boost research and development investment to over £22 billion a year by the end of the decade, and open the door for more skilled international talent in key sectors such as AI, advanced manufacturing, and technology.
Welsh Government officials have welcomed the announcement, stressing that these strategies could help transform the country’s economic landscape. UK Prime Minister Keir Starmer described the new approach as “a turning point for Britain’s economy,” highlighting the commitment to providing certainty and direction for business leaders after a period of global uncertainty. Starmer said, “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.”
Secretary of State for Wales, Jo Stevens, echoed this optimistic outlook, pointing to Wales’s strengths in fields like aerospace, semiconductors, and emerging sectors such as offshore wind. “Our modern Industrial Strategy is built to last and make Wales one of the best places to invest and do business,” she said, adding that cooperation with the Welsh Government would be crucial for sustaining momentum and distributing benefits widely.
Business and trade leaders have also responded positively to the scheme, with figures from Welsh fintech, tech, and regional investment boards welcoming what they see as timely and much-needed support. Sarah Williams-Gardener, chairwoman of Fintech Wales, noted the emphasis on AI and computing as vital for ensuring that the financial sector remains competitive and innovative. Frank Holmes of Cardiff Capital Region described the move as “a timely and important shift towards a connected, strategic approach to economic growth,” while Tramshed Tech CEO Louise Harris praised the strategy’s ambition to create high-quality, sustainable jobs and support the next generation of Welsh scale-ups.
While implementation will be closely watched, the government’s bold plan signals a renewed focus on industrial renewal and innovation – one that could redefine not only the fortunes of individual Welsh businesses but also the broader economic direction of the nation over the coming decade.