The Government’s Industrial Strategy update

What’s been announced, and which areas AAT members should know about.

The Government has outlined its economic plan for growth in eight priority sectors in its newly published The UK’s Modern Industrial Strategy (PDF). It’s a long-term programme underpinned by funding and legislation, with budgets outlined in the 2025 Spending Review protected, and a new Industrial Strategy Bill to follow.

The Government also published separate documents for the eight priority sectors. We look at the Professional and Business Services Sector Plan (PDF) below, too.

Many aspects have previously been announced, so this article highlights new policies.

The UK’s Modern Industrial Strategy: Key announcements

Skills

The Government wishes to align skills offerings with growth sectors, and has tasked Skills England with coordinating this better.

We learned that the first wave of short courses to be funded via the Growth and Skills Levy will be eligible from April 2026, focused on digital, AI, and engineering.

Other announcements include a new skills passport to better document industry-recognised competencies, developed in collaboration between Skills England and industry.

SMEs

The strategy document outlines measures to support the development of SMEs, including a new Business Growth Service to facilitate access to government support.

A consultation on measures to clamp down on late payments will follow.

Tax

The strategy outlines how it will help business confidence by creating a predictable tax environment. The Government will consider ways to ‘stabilise’ the tax environment in the Autumn Budget to ensure it supports the industrial strategy.

Professional and Business Services Sector Plan: Key announcements

Accompanying the Industrial Strategy, the Department for Business and Trade has published individual sector plans. The Professional and Business Services (PBS) Sector Plan (PDF) covers the accountancy and tax advice professions. As with the main strategy document, it contains a mix of new and existing policy measures, but we only cover the new ones here.

Objectives

The Government’s objective is that by 2035, the UK will be the world’s most trusted adviser to global industry and will remain the second-largest exporter of PBS globally. It identifies five pillars critical to the sector’s future competitiveness:

• increased technology adoption and innovation
• a highly skilled, inclusive and mobile workforce
• global opportunities increasing PBS trade
• improved access to finance
• international leadership of dynamic standards and regulation for PBS.

Announcements relevant to AAT members

Skills and workforce

• Collaboration between PBS employers, HE institutions and universities to better align skills provision with sector needs.
• Enhanced careers information to increase take-up of PBS-relevant courses.
• Improved employer engagement via Skills England, including place-based deals between employers and training providers.
• Drives to improve diversity and inclusion in the PBS sector.

SMEs and access to finance

• £4 billion Industrial Strategy Growth Capital initiative to offer flexible support tailored to sectors including PBS.
• The creation of five PBS Hubs including in Greater Manchester and West Midlands to support local growth, AI adoption, and international investment.

Professional standards and regulation

• Following the 2024 consultation, which AAT responded to, the Government plans to bring forward a reform package for Money Laundering Regulations (MLR) by the end of 2025.

Technology adoption

• Launching a technology adoption programme for high-growth potential PBS SMEs.
• Enhance Innovate UK’s Next Generation Professional and Financial Services programme.
• UK Research and Innovation (UKRI) will increase and provide more targeted support for the eight growth-driving sectors identified in the Industrial Strategy.
• Improved cybersecurity support for PBS firms.

AAT’s reaction

AAT CEO Sarah Beale MAAT said, “On the face of it, the UK’s Industrial Strategy will give us a much-needed step toward economic renewal, and I’m proud to be able to say that AAT plays a central role in delivering the skilled workforce needed to drive growth.

“There’s been a lot of change in the sector recently, and as we work through the detail of that change and await much needed clarity, there is one thing I am certain of – without the right skills to support the needs of employers and a strong focus on learner outcomes, national renewal will remain a strategy on paper and not a reality.”

You can read her full response on LinkedIn.

AAT Comment offers news and opinion on the world of business and finance from the Association of Accounting Technicians.