Alongside its Industrial Strategy, the government has identified eight strategic sectors to drive national growth, support net zero, foster regional development, and enhance economic security:

• professional and business services,
• advanced manufacturing,
• clean energy,
• creative industries,
• defence
• digital and technologies,
• financial services, and 
• life sciences.

Each sector now has, or will shortly have, a bespoke plan, developed by policymakers in partnership with industry, to map the path to 2035.

Professional and business services

Professional and business services sector, spanning accountancy, law, consultancy, architecture, and engineering, is the UK’s largest service-sector contributor, providing one in seven jobs. The plan, which has been welcomed by ICAEW, sets out the government’s ambition for the UK to be the most trusted adviser to global industry by 2035.

The strategy makes clear that the modern accountant must evolve beyond compliance to become a strategic partner in AI integration, ESG transformation, and business growth..

• Find out more about the plan and ICAEW’s contribution.

Advanced manufacturing

Advanced manufacturing is undergoing a structural shift as it embraces digitisation and decarbonisation. The plan aims for the UK to be the best place in the world to invest in and grow advanced manufacturing by 2035

For accountants, this presents both challenges and opportunities in areas such as capital investment and research and development (R&D) incentives. Manufacturers will need support with carbon accounting and navigating incentives tied to sustainability goals.

As firms digitise, real-time financial reporting and cost optimisation will become essential. Accountants can add value by helping manufacturers access growth finance, manage supply chain risk, and prepare for green taxation frameworks.

Sarah Jones MP, Minister of State for Industry, said: “Today, advanced manufacturing is the backbone of our economy, directly supporting around 760,000 jobs and contributing more than £82bn gross value added to our economy every year … But, we must recognise the urgent need to maintain a competitive edge in an era of global competition and rapid technological change.”

Clean energy

The UK’s clean energy economy is growing three times faster than the wider economy. But the aim for this sector is to double investment levels across our frontier clean energy industries to more than £30bn per year by 2035. 

Energy Secretary Ed Milliband’s goal for this sector is to harness the potential of AI, automation and advanced technologies to optimise how energy is generated and consumed. The resulting modern, affordable, and secure energy system aims to cut energy bills, as well as bringing certainty and stability.

Creative industries

The creative Industries, which already contribute more than £124bn to the economy and employ 2.4 million people, will see the government boost investment, address skills gaps, and unlock the potential of subsectors like gaming, design, and film.

Targeted interventions will boost innovation, enhance skills development, improve access to finance, increase exports and support regional growth. The sector plan also includes dedicated support for high-potential creative subsectors. 

The government’s ambition is to significantly increase business investment by the creative industries from £17bn to £31bn and it aims to drive growth across the UK.

Defence

The defence Sector Plan will build the UK into a defence industrial superpower, according to the government. It will reform procurement, strengthen domestic capabilities, and enable SMEs to scale and innovate.

Digital and technologies

The digital and technologies sector plan targets leadership in advanced connectivity, AI, cybersecurity, quantum, semiconductors, and engineering biology. The government’s vision is to secure the UK’s first trillion-dollar tech business.

Under this strategy, the government plans to prioritise R&D support through:

• record public investment – £22.6bn in 2029/30,
• strengthening access to finance through the National Security Strategic Investment Fund, the British Business Bank and National Wealth Fund, and
• taking action to build the UK’s skills pipeline. 

Financial services

Financial services account for around 9% of UK economic output and remain vital for funding business growth, consumer finance, and international competitiveness.

The financial services sector plan will outline how the government aims for the UK to be the world’s most innovative full-service financial centre by 2035. It expects a greater focus on regulatory reform to balance innovation and financial stability and integration of fintech and AI into mainstream financial services.

Life sciences

The UK’s Life Sciences Sector Plan, developed alongside the NHS’s 10-Year Health Plan, aims to make the UK a global leader in biotech, medtech, and health innovation. The vision includes:

• streamlining regulation and procurement,
• creating new pathways for scale-up investment,
• building a self-sustaining innovation ecosystem,
• combining public and private funding, and
• driving NHS reform to better adopt and commercialise innovation.

Accountants can help support early-stage life-sciences companies with growth planning, R&D tax credits, risk analysis, and advising investors and boards in a rapidly evolving sector.

• Read all of the sector plans in full

More on the announcements

• Industrial Strategy: four changes to boost professional services
• Industrial and Infrastructure Strategies: at a glance