The United Kingdom has unveiled a new Industrial Strategy, outlining a ten-year plan to boost investment, create skilled jobs, and position Britain as a top destination for business, according to a press release. The plan aims to target areas of the economy with the highest growth potential, reduce regulatory burdens, and deepen international partnerships.
The strategy focuses on eight sectors: clean energy, advanced manufacturing, defense, creative industries, financial services, business and professional services, digital and technology, and life sciences — all fields where Israeli innovation is recognized globally. Each sector will have a dedicated plan to attract investment and create high-quality jobs.
UK to increase research, development funding, invest £1.2 b.
The UK will increase research and development funding, support small businesses in adopting new technologies, and invest £1.2 billion ($1.6 billion) more annually in skills by 2028-29.
It also pledges more than £2 billion ($2.6 billion) to deliver an AI Action Plan, including a Sovereign AI Program, and double investment in clean energy industries by 2035, with an additional £700 million ($1.39 million) for clean energy supply chains.
Creative industries will receive a £380 million ($510 million) boost, while over £1 billion ($1.34 billion) will go toward scaling up technology businesses and supporting sectors such as quantum technologies, semiconductors, and engineering biology.
Britain is Israel’s fourth-largest trading partner, with bilateral trade and investment continuing to grow. The UK-Israel Trade Continuity Agreement ensures opportunities for businesses on both sides. Over the past five years, more than 300 Israeli companies have expanded into the UK, generating around 4,000 jobs and £906 million ($1.21 billion) in investment. In the past year alone, Israeli investments created 871 jobs and contributed £173 million to the UK economy.
Israeli companies supply one in eight medicines used in the UK, while Britain exports cars and aircraft engines to Israel.
The new strategy also includes a Global Talent Taskforce and a £54 million ($72.4 million) fund to attract leading researchers and innovators to the UK, presenting further opportunities for Israeli entrepreneurs and scientists.
Ben Myers, Chargé d’Affaires at the British Embassy in Israel, said the plan offers Israeli businesses and innovators the “stability and confidence to make long-term investment decisions,” further strengthening UK-Israel economic ties.