NEWS / Infrastructure Intelligence / Infrastructure sector has key part to play in Industrial Strategy

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Inset: The new Industrial Strategy (image: gov.uk)

23 JUN 2025

INFRASTRUCTURE SECTOR HAS KEY PART TO PLAY IN INDUSTRIAL STRATEGY

Industry has welcomed the government’s 10-year Industrial Strategy which aims to unlock billions in investment and support 1.1 million new jobs over the next decade.

ACE Group, the membership organisation for Britain’s engineering and consultancy sector, welcomed news that the strategy had named professional and business services as one of its key areas for growth – recognising the UK’s world-renowned capabilities in infrastructure, sustainability and the built environment. 

From setting new global standards in net zero construction and Biodiversity Net Gain to delivering complex infrastructure projects across five continents, ACE says British consultancy and engineering firms continue to punch well above their weight, exporting intellectual capital and technical excellence that shapes cities, systems and societies across the globe. 

Kate Jennings, CEO of ACE Group, said: “It is hugely welcome that professional services are recognised as a growth sector in the new Industrial Strategy. As a component of that, the UK’s engineering and consultancy sectors are quietly indispensable.  

“Our sector has made huge strides to meet the aims outlined in the strategy, to be the world’s most trusted advisers to global industry.  We provide not just design and delivery, but strategic thinking, governance frameworks and innovation - in short, the tools and trust needed to build future economies. 

“Following last week’s Infrastructure Strategy and today’s £100m investment in engineering skills, alongside 65,000 new courses in engineering and digital, investors now have greater certainty and a clearer framework to drive business growth across the UK. 

“We welcome the strategy’s ambition to harness British excellence. What’s vital now is ensuring continuity, not just in policy, but in procurement, skills investment, and export support. We have the knowledge, the networks and the track record. Let’s now turn that into delivery.” 

Ben Brittain, director of public affairs at ACE Group, added: “The Industrial Strategy represents a long-overdue framework to recognise and grow UK capability, align capital, innovation and skills.

“It is a moment to cement Britain’s competitive edge in infrastructure-led growth. With a robust well of domestic expertise, the sector is ideally placed to deliver on national ambitions, whether in modernising transport and digital systems or scaling up clean energy technologies, both at home and abroad. 

“We don’t merely design bridges or buildings; we design and unlock the outcomes to create thriving communities and sustainable infrastructure. If this strategy enables more of that, we’re not only contributing to Britain’s growth story, but we’re also influencing how infrastructure is delivered globally and ensuring British expertise and excellence sits at the heart of that.” 

Brian Yates, UK and Ireland managing director at Stantec, said: “Across the main Industrial Strategy and eight long-term sector papers, there will be much for experts in almost every area of the UK economy to digest in the days and weeks to come.

“What is immediately clear is that the government has listened to many of the recommendations from our sector, particularly three key points: overall clarity and confidence in a long-term plan; access to investment to enable skills training and capacity building; and reducing barriers to innovation and growth - from lowering energy costs to planning reforms.

“In Stantec's response to the strategy's consultation, we called for a greater focus on creating industrial clusters across the UK, so we welcome the commitment to the Strategic Sites Accelerator, and the acknowledgement of the important role of infrastructure and connectivity in creating these regional centres of excellence.

“It is also encouraging to see clean energy front and centre of the strategy, and one of the first sector papers to be published.  Investment in clean energy generation and transmission isn't just good for our energy security and the planet, it is foundational to the success of all our other industries and innovations - data centres, transportation, life sciences, advanced manufacturing and many more. 

“This is an ambitious plan that spans almost every element of the modern economy.  The responsibility is now on sector leaders to take this onboard and make the most of the opportunities it presents.”

Neil Sansbury, managing director for UK and Ireland at Ramboll, also welcomed the Industrial Strategy which he said “takes important steps to build resilience and drive growth across the UK economy”. 

“Strengthening supply chains, accelerating upgrades to the power grid, and aligning skills across key sectors such as clean energy, advanced manufacturing, life sciences and defence will position the UK as a global leader in these areas,” he added.

“Investment in the new industrial clusters, including the life sciences super cluster in the North-west and the defence industrial base, will require integrated infrastructure, skills, and connectivity to succeed. 

“We’re pleased to see £4.3bn committed to advanced manufacturing and £600m for sector-specific clusters. The UK has the potential to be a global leader in wind, CCS and hydrogen and it is encouraging that the industries are receiving the support needed to help reach their full potential. These investments can unlock long-term growth if backed by smart delivery and cross-sector collaboration.

“It is good to see a clear focus on diversified and resilient energy supply chains. With global tensions rising, this is no longer a future concern, it’s an urgent national priority.”

Paul, Tremble, chief strategy officer at WSP UK and Ireland and Africa, said: “Today marks a pivotal moment in the UK’s economic renewal. The government’s new Industrial Strategy lays the foundations for a decade of innovation, investment and productivity, driven by bold action on skills, defence, advanced manufacturing and clean energy.

“The £1.2bn annual commitment to technical training, AI capability and apprenticeships in priority sectors, including defence, is a powerful signal that we're serious about building a workforce fit for the future. And cutting green levies to ease energy costs for industry sends a clear message: this is a strategy that backs business, empowers workers, and builds a high-value, future-ready economy where good jobs and sustainable growth are shared across the UK.”

Martin Pibworth, chief executive designate at SSE, said: "The government’s Industrial Strategy is a welcome signal of long-term thinking and ambition – doubling down on homegrown energy is the right thing for security, resilience and affordability, making the most of the UK’s competitive geographical and technical advantages in renewables in particular.

“It’s exactly the kind of commitment that gives industry the confidence to deliver at pace and scale. With important decisions on energy policy expected in the weeks ahead, we hope to see a continued focus on unlocking investment that drives growth.

“As the UK’s clean energy champion, SSE is investing £17.5bn over five years to 2027 - building the infrastructure, creating high-quality jobs, supporting the supply chain and driving the innovation needed to deliver a net zero economy.”

Dhara Vyas, Energy UK’s chief executive, also welcomed the government’s new Industrial Strategy and Clean Energy Industries Sector Plan, which she said “rightly recognise” the pivotal role energy will play across the whole economy, powering growth through digitalisation and electrification, boosting regional prosperity and delivering economic security and resilience. 

She added: “Stable, affordable energy prices will help ensure that the UK remains a competitive place to do business, and in an increasingly uncertain global operating environment, clean power will deliver energy security. Focusing on priority technologies where the UK has global expertise will deliver a strong competitive advantage for our businesses and economy. 

“We know the investment necessary to decarbonise the economy will mostly be funded by the private sector. Clarity on government policy, removal of the barriers to investment and targeted support are all essential to meet this ambition.   

“We welcome the government’s move to reduce bills further for the most energy intensive companies, and to remove some policy costs from key sectors partly funded by ETS revenues, something industry has long called for. It will be important to ensure the full costs are fairly paid for, and don’t increase costs for other consumers. 

“It is also essential to support SMEs to decarbonise, electrify and ultimately reduce their energy costs. With such an ambitious programme, the policy frameworks which underpin the Clean Power Action Plan must be fully aligned with the wider Industrial Strategy, and Government should continue to work across department to ensure a joined-up delivery, unlocking investment and accelerating our progress towards a cleaner, more competitive economy.”

Chris Sargent, managing director UK real estate at Turner & Townsend, said: “Businesses will be spending today familiarising themselves with a whole new language - the IS-8, Industrial Strategy Zones, Global Talent Taskforce, Strategic Sites Accelerator, and plenty more. Behind this terminology, the Industrial Strategy does mark a watershed - the first full statement of the government's ambitions and approaches to the sectors it has committed to supporting to drive economic growth.

“In our response to the green paper last year, Turner & Townsend called for the inclusion of construction as a listed 'foundational' sector in the strategy. It's not just about the label - construction is absolutely crucial to the delivery of every part of the wider strategy, from advanced manufacturing and life sciences to energy and defence - and we're pleased to see this acknowledged today. We also highlighted the need to develop the right skills to modernise construction, so it is excellent that this strategy builds on the previously announced construction skills package with more detail on tech, digital training and specialist engineering.

“However, the impact of this strategy will be defined by the extent to which it can co-ordinate skills and capacity across these growth-driving sectors. With so many new projects, programmes, and plans being brought forward simultaneously, an under-resourced construction industry risks becoming the weak link, blamed for a lack of delivery. The work of the new Supply Chain Centre must support construction’s capabilities across these sectors, its resilience and, ultimately, its role at the centre of economic growth - to ensure we are a catalyst, not a constraint.”

Sam Gould, director of policy and external affairs at the Institution of Civil Engineers, said: “It's good to see the government's continued focus on long-term planning and providing certainty for the sector in the Industrial Strategy.
It's clear that the government has listened to industry needs and carefully considered how various strategies should link together, and how the country must plan for future needs.

“Clear strategic direction and more certainty for investors will help create the right environment for successful delivery.
Now, with the leadership of the National Infrastructure and Service Transformation Authority, the UK needs to get on with its mission to spark growth and meet its environmental ambitions.”

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