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Government's new 10-year Industrial Strategy 'has more holes in it than a kitchen colander'

ended 23. June 2025

THE Government's 10-year Industrial Strategy has been criticised for having “more holes in it than a kitchen colander”.

The Industrial Strategy is a 10-year plan aiming to boost investment, create good skilled jobs and "make Britain the best place to do business".

The plan includes electricity costs for 7,000 businesses to be slashed by up to 25%, a total of 1.1 million new well-paid jobs over the next decade and boosting research and development spending to £22.6bn per year by 2029-30 to drive innovation - including £2bn for AI.

Tony Redondo, Founder at Cosmos Currency Exchange, said energy cuts have come too late for struggling businesses.

He said: "To give this Labour Government credit, this is an ambitious strategy, leveraging clean energy and tech to create 1.1m jobs, cut electricity costs by 25% for 7,000 firms by 2027, and boost R&D to £22.6bn by 2029-30, including £2bn for AI. 

“In the real world, UK businesses need relief now. Relief from the highest tax take since the 1940s, high interest rates and energy costs. Besides, this strategy has more holes in it than a kitchen colander, including vague metrics, regional imbalances, and retail/hospitality exclusion. In any case, energy cuts have come too late with firms facing 60-100% higher electricity costs.”

David Belle, Founder and Trader at Fink Money, said cutting energy prices might not actually be a good idea for the economy.

He continued: "If the Government tries to further intervene in the energy market, it will cause more distortions. The energy regulator’s current price cap has actually led to higher prices, mainly because they have caused debts to be collected via higher prices now. 

“Miliband’s net zero policy has also caused higher costs, evidence by the uk being the only G10 nation to meet the Paris treaty agreement terms by 2030. We are a goody two shoes nation that cares more about what others think of us than what our own voters do.”

Justin Moy, Managing Director at EHF Mortgages, said the Government does not understand the needs of small business owners.

"With all the feel of a new book within the Chronicles of Narnia, this is yet more fantasy from the Government. I think we are all waiting for a 25% reduction in electric costs, not just businesses but the rest of the UK population too, and a reversal in recent NI contribution changes and Corporate Tax will be more than sufficient for the vast majority of businesses of all sizes to feel valued and wanted by its Government. 

“Unfortunately, this has all the hallmarks of 'allowing the larger business to become larger, and the smaller firms to disappear'. Perhaps a Government leadership that has experience of self-employment would be radical enough to understand the needs of the small business owners.”

Pete Mugleston, Mortgage Advisor & Managing Director at Online Mortgage Advisor, agreed, adding: "This strategy looks great on paper, but will probably run into trouble in the harsher climate of the real world. I'm sure almost everyone in the country would want electricity costs to be slashed by 25%, not just 7,000 lucky businesses. Investment in innovation and AI is encouraging, especially for tech-driven sectors, but we need to see support reach SMEs too, not just big firms. 

“This is an ambitious strategy, and the government should be applauded for aiming high. The problem is that it's probably largely unachievable, especially if Labour lose the next election, and unlikely to have the impact the government desires.”

Faisal Sheikh, Managing Director at Monmouth Capital, said energy costs for UK businesses are still among the highest in the developed world.

He said: "The government talks about slashing electricity bills as if it happens by magic. Reading the detail, it's basically going to subsidise energy bills for a wide range of businesses. That does nothing to address the root causes of why the UK's energy costs are among the highest in the developed world: chronic underinvestment in capacity, and in particular, gridlock when it comes to grid connections. 

"The Connections Accelerator Service is a welcome announcement as part of this new strategy, but as we shift to a cleaner, decentralised electricity network, much more of the funding should have gone towards fixing this bottleneck at speed."

Rob Peters, Principal at Simple Fast Mortgage, added: “The UK has a track record of big industrial promises that never leave the press release stage. Promises of 1.1 million well-paid jobs sound fantastic, but how, where, and when? 

"The energy bill cut only applies to a tiny subset of firms, while many others are still battling post-Brexit trade barriers, skills shortages and high borrowing costs. Unless we fix the fundamentals such as planning, education, infrastructure, no industrial strategy will stick.”

Kundan Bhaduri, Entrepreneur at The Kushman Group, also said: "The Government’s 10-year industrial strategy is all headline, little backbone. Slashing electricity costs for 7,000 firms sounds nice, but what about the 5.5 million other businesses still grappling with sky-high energy bills? Promising 1.1 million “well-paid” jobs sounds great on paper, but we’ve heard that tune before—and rarely seen the orchestra turn up. 

“£22.6 billion a year for R&D by 2029, with £2 billion for AI, is bold—but bold doesn’t matter if nothing gets delivered. As an entrepreneur, I’ve seen too many glossy announcements fizzle into nothing. Where’s the plan to fix broken planning laws or scale British industries that can actually compete? Britain doesn’t need another press release—we need a government that knows how to build, back, and deliver. Right now, this strategy has more holes than a tea-time biscuit and about as much bite.”

While Rob Mansfield, Independent Financial Advisor at Rootes Wealth Management, added: “It's hard to argue with a lot of these aspirations but it's not clear how the Government are going to make it happen. This feels like a placeholder document whilst they work out some policies.”

Lucinda O'Reilly, Director at The International Trade Consultancy, continued: "UK manufacturers have been at a huge disadvantage against global competitors for decades due to the significantly higher energy costs they pay. Anything that levels up the playing field for SMEs in this area is good. Giving more money to UK Export Finance is pointless, they've never been able to use all the money they have because they're only interested in supporting larger, well established companies that can navigate the application process so no use to SMEs without a change in UKEFs mindset. 

“Industry desperetaly needs new talent, if this initiative to get school leavers into manufacturing succeeds where all the others have failed it will be a big win for the UK's future. The UK is in a unique position to dramatically increase goods exports right now but only if manufacturers get the support they need. The 10-year industrial strategy has some good ideas but they must be delivered to benefit the country. Will Labour be in power long enough to see it through?”

9 responses from the Newspage community

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Editor
Tony RedondoVerified
Founder at Cosmos Currency Exchange
To give this Labour government credit, this is an ambitious strategy, leveraging clean energy and tech to create 1.1m jobs, cut electricity costs by 25% for 7,000 firms by 2027, and boost R&D to £22.6bn by 2029-30, including £2bn for AI. In the real world, UK businesses need relief now. Relief from the highest tax take since the 1940s, high interest rates and energy costs.

Besides, this strategy has more holes in it than a kitchen colander, including vague metrics, regional imbalances, and retail/hospitality exclusion. In any case, energy cuts have come too late with firms facing 60-100% higher electricity costs.
Copy

Editor
Justin MoyVerified
Managing Director at EHF Mortgages
With all the feel of a new book within the Chronicles of Narnia, this is yet more fantasy from the government. I think we are all waiting for a 25% reduction in Electric costs, not just businesses but the rest of the UK population too, and a reversal in recent NI contribution changes and Corporate Tax will be more than sufficient for the vast majority of businesses of all sizes to feel valued and wanted by its government. Unfortunately, this has all the hallmarks of 'allowing the larger business to become larger, and the smaller firms to disappear'. Perhaps a government leadership that has experience of self-employment would be radical enough to understand the needs of the small business owners.
Copy

Editor
Pete MuglestonVerified
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
This strategy looks great on paper, but will probably run into trouble in the harsher climate of the real world. I'm sure almost everyone in the country would want electricity costs to be slashed by 25%, not just 7,000 lucky businesses. Investment in innovation and AI is encouraging, especially for tech-driven sectors, but we need to see support reach SMEs too, not just big firms. This is an ambitious strategy, and the government should be applauded for aiming high. The problem is that it's probably largely unachievable, especially if Labour lose the next election, and unlikely to have the impact the government desires.
Copy

Editor
Rob PetersVerified
Principal at Simple Fast Mortgage
The UK has a track record of big industrial promises that never leave the press release stage. Promises of 1.1 million well-paid jobs sound fantastic, but how, where, and when?

The energy bill cut only applies to a tiny subset of firms, while many others are still battling post-Brexit trade barriers, skills shortages and high borrowing costs. Unless we fix the fundamentals such as planning, education, infrastructure, no industrial strategy will stick.
Copy

Editor
Rob MansfieldVerified
Independent Financial Advisor at Rootes Wealth Management
It's hard to argue with a lot of these aspirations but it's not clear how the Government are going to make it happen. This feels like a placeholder document whilst they work out some policies.
Copy

Kundan BhaduriVerified
Entrepreneur, Investor and Landlord at The Kushman Group
The Government’s 10-year industrial strategy is all headline, little backbone. Slashing electricity costs for 7,000 firms sounds nice, but what about the 5.5 million other businesses still grappling with sky-high energy bills? Promising 1.1 million “well-paid” jobs sounds great on paper, but we’ve heard that tune before—and rarely seen the orchestra turn up. £22.6 billion a year for R&D by 2029, with £2 billion for AI, is bold—but bold doesn’t matter if nothing gets delivered. As an entrepreneur, I’ve seen too many glossy announcements fizzle into nothing. Where’s the plan to fix broken planning laws or scale British industries that can actually compete? Britain doesn’t need another press release—we need a government that knows how to build, back, and deliver. Right now, this strategy has more holes than a tea-time biscuit and about as much bite.
Copy

Premium
David BelleVerified
Founder and Trader at Fink Money
If the government tries to further intervene in the energy market, it will cause more distortions.

The energy regulator’s current price cap has actually led to higher prices, mainly because they have caused debts to be collected via higher prices now.

Miliband’s net zero policy has also caused higher costs, evidence by the uk being the only g10 nation to meet the Paris treaty agreement terms by 2030.

We are a goody two shoes nation that cares more about what others think of us than what our own voters do.
Copy

Lucinda O'ReillyVerified
Director at The International Trade Consultancy
UK manufacturers have been at a huge disadvantage against global competitors for decades due to the significantly higher energy costs they pay. Anything that levels up the playing field for SMEs in this area is good. Giving more money to UK Export Finance is pointless, they've never been able to use all the money they have because they're only interested in supporting larger, well established companies that can navigate the application process so no use to SMEs without a change in UKEFs mindset. Industry desperetaly needs new talent, if this initiative to get school leavers into manufacturing succeeds where all the others have failed it will be a big win for the UK's future. The UK is in a unique position to dramatically increase goods exports right now but only if manufacturers get the support they need. The 10-year industrial strategy has some good ideas but they must be delivered to benefit the country. Will Labour be in power long enough to see it through?
Copy

Faisal SheikhVerified
Managing Director at Monmouth Capital
The government talks about slashing electricity bills as if it happens by magic. Reading the detail, it's basically going to subsidise energy bills for a wide range of businesses. That does nothing to address the root causes of why the UK's energy costs are among the highest in the develope world: chronic underinvestment in capacity, and in particular, gridlock when it comes to grid connections. The Connections Accelerator Service is a welcome announcement as part of this new strategy, but as we shift to a cleaner, decentralised electricity network, much more of the funding should have gone towards fixing this bottleneck at speed.