The Industrial Strategy announced today reveals a near doubling of business investment to £39bn a year. The strategy outlines £4.3bn in funding for advanced manufacturing to spur innovation, automation, digitisation and commercialisation, and up to £99m from 2026 to expand the Made Smarter Adoption programme to support SME manufacturing businesses to take up new technologies.

Other plans within the strategy include upskilling domestic workers and reducing reliance on foreign workers by spending an extra £1.2bn each year on skills by 2028/29, including £187m on digital skills and AI learning.

Mike Thornton, National Head of Manufacturing at RSM UK, said: “The UK’s advanced manufacturing sector is already a world leader in terms of innovation, but has been held back by slower adoption of digital technology to secure long-term competitiveness, innovation and growth. It is therefore encouraging to see today’s announcement focus on innovation by doubling business investment, new technologies, and upskilling.

“Prioritising investment in these areas will reduce the sector’s reliance on traditional methods of manufacturing by bringing in new technology, bridging the labour and skilled work gap and strengthening diffusion of learning. This will lead to improved productivity while also widening the scope of employment opportunities and attract new talent with different skillsets to manufacturing, especially as the government rolls out wider training in digital skills and AI. The continued roll out of the Growth and Skills Levy will ensure more flexibility with courses, making upskilling in these areas more accessible.”

He added: “This goes hand in hand with the expansion of the Made Smarter Adoption programme, which will ensure SMEs can take up new technologies which match the skillsets of the next generation of workers. But, manufacturers equally need investment capital to drive growth, so the £4.3bn in funding, including up to £2.8bn in R&D programmes is a crucial step in ensuring firms can invest in innovation, scale operations, and remain globally competitive.”

Mark Crawford,Business Transformation Director at RSM UK, added: “As the need for growth in the UK continues, the advanced manufacturing sector must continue to adopt new technologies to improve efficiencies in the supply chain, scale up and unlock productivity. However, UK manufacturers cannot rely on continued growth to come from domestic activity alone, but also from international trade and global partnerships, especially with the US and Germany.

“Yet current global trade conditions have led to greater uncertainty and fragility in the supply chain, so preserving the UK as the central hub for an organisation, while increasing the investment in technologies and data, will improve supply chain resilience and capability. The industrial strategy also focuses on enhancing connectivity between UK city regions and clusters, ensuring the UK is an attractive place for investment, attracting talent, and strengthening the supply chain. This will be key to unlocking more high-skilled jobs and making the UK a competitive place to do business.”