{"id":1854,"date":"2025-07-03T15:09:04","date_gmt":"2025-07-03T15:09:04","guid":{"rendered":"https:\/\/leyton.majjane.agency\/uk\/insights\/articles\/how-the-industrial-strategy-looks-to-boost-rd-drive-innovation-and-deliver-long-term-growth\/"},"modified":"2026-07-26T16:37:39","modified_gmt":"2026-07-26T14:37:39","slug":"how-the-industrial-strategy-looks-to-boost-rd-drive-innovation-and-deliver-long-term-growth","status":"publish","type":"article","link":"https:\/\/leyton.com\/uk\/insights\/articles\/how-the-industrial-strategy-looks-to-boost-rd-drive-innovation-and-deliver-long-term-growth\/","title":{"rendered":"How the Industrial Strategy looks to boost R&amp;D, drive innovation and deliver long-term growth"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1854\" class=\"elementor elementor-1854\" data-elementor-post-type=\"article\">\n\t\t\t\t<div class=\"elementor-element elementor-element-76248027 e-flex e-con-boxed e-con e-parent\" data-id=\"76248027\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-42ff6323 elementor-widget elementor-widget-text-editor\" data-id=\"42ff6323\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The recently launched <a href=\"https:\/\/www.gov.uk\/government\/publications\/industrial-strategy\">Industrial Strategy<\/a> is the government\u2019s latest way of setting out its economic priorities.<br><br>Like the earlier <a href=\"https:\/\/www.gov.uk\/government\/publications\/corporate-tax-roadmap-2024\">Corporate Tax Roadmap<\/a>, the strategy hopes to give the business community certainty while helping to lay the groundwork for growth and investment. In its own words: \u201cIt is robust, strategic, and unashamedly long-term: a 10-year plan to make the UK the best country to invest in anywhere in the world.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As such, there are no surprises, with reiterations of commitments to:<\/p>\n\n\n\n<div class=\"wp-block-leyton-orion-block-list list-block undefined\"><div class=\"container\"><div class=\"row\"><div class=\"col\"><ul><li>maintaining the <a href=\"https:\/\/majjane.leyton.com\/uk\/r-and-d-tax-credits\/\">R&amp;D Tax Credits<\/a> scheme<\/li><li>capping the Corporation Tax rate at 25%<\/li><li>maintaining the small profits rate and marginal relief at their current rates and thresholds<\/li><li>keeping the full expensing and annual investment allowance <a href=\"https:\/\/majjane.leyton.com\/uk\/capital-allowances\/\">Capital Allowances<\/a><\/li><li>maintaining <a href=\"https:\/\/majjane.leyton.com\/uk\/patent-box\/\">Patent Box<\/a><\/li><li>improving tax administration by modernising and investing in HMRC<\/li><\/ul><\/div><\/div><\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">New guidance on R&amp;D tax reliefs to benefit the creative industry<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">One upcoming change of interest, however, is referred to within the <a href=\"https:\/\/assets.publishing.service.gov.uk\/media\/685943ddb328f1ba50f3cf15\/industrial_strategy_creative_industries_sector_plan.pdf\">Creative Industry: Sector Plan<\/a>, where plans are revealed for later in 2025 when HMRC will be updating its guidance on R&amp;D tax reliefs to help benefit the creative industry.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The new guidance seeks to clarify that creative sector projects can qualify for R&amp;D tax relief as long as their arts activities directly resolve scientific or technological uncertainties. Currently there is a separate <a href=\"https:\/\/majjane.leyton.com\/uk\/creative-industry-tax-reliefs\/\">Creative Industries Tax Relief<\/a> scheme, which does not focus on innovation within the industry.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Supporting growth-driving frontier industries<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The strategy rightly asserts that the key to unlocking economic growth is driving innovation. To do this, the government plans to invest \u00a386 billion into UK R&amp;D targeting eight growth-driving sectors, which they have dubbed the \u201cIS-8\u201d (Industrial Strategy 8). These IS-8 currently represent 32% of the UK\u2019s economy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Within each of these growth-driving sectors, the strategy has also identified subgroups known as \u201cfrontier industries\u201d that are at the leading edge of their sectors and are therefore most likely to see breakthroughs that can be commercialised, drive growth in a way that\u2019s both sustainable and clean, and attract private investment. More importantly, they are seen as the most likely sectors and industries to create jobs, strengthen communities, and contribute to a stronger and more resilient UK economy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Industrial Strategy\u2019s growth-driving sectors and their frontier industries include:<\/p>\n\n\n\n<table style=\"width: 100%;border-collapse: collapse;font-family: sans-serif;font-size: 14px;color: black\">\n  <thead>\n    <tr>\n      <th style=\"border: 1px solid #ccc;padding: 8px;background-color: #f2f2f2;font-weight: normal\">Growth-driving sector<\/th>\n      <th style=\"border: 1px solid #ccc;padding: 8px;background-color: #f2f2f2;font-weight: normal\">Frontier industries<\/th>\n    <\/tr>\n  <\/thead>\n  <tbody>\n    <tr style=\"background-color: #fafafa\">\n      <td style=\"border: 1px solid #ccc;padding: 8px\">Advanced manufacturing<\/td>\n      <td style=\"border: 1px solid #ccc;padding: 8px\">\n        \u2022 Advanced materials<br>\n        \u2022 Aerospace manufacturing<br>\n        \u2022 Agritech<br>\n        \u2022 Automotive manufacturing<br>\n        \u2022 Batteries<br>\n        \u2022 Space\n      <\/td>\n    <\/tr>\n    <tr>\n      <td style=\"border: 1px solid #ccc;padding: 8px\">Clean energy industries<\/td>\n      <td style=\"border: 1px solid #ccc;padding: 8px\">\n        \u2022 Carbon capture and undersea storage (CCUS) and greenhouse gas removal (GGR)<br>\n        \u2022 Heat pumps<br>\n        \u2022 Hydrogen<br>\n        \u2022 Nuclear fission<br>\n        \u2022 Nuclear fusion<br>\n        \u2022 Offshore and onshore wind\n      <\/td>\n    <\/tr>\n    <tr style=\"background-color: #fafafa\">\n      <td style=\"border: 1px solid #ccc;padding: 8px\">Creative industries<\/td>\n      <td style=\"border: 1px solid #ccc;padding: 8px\">\n        \u2022 Advertising and marketing<br>\n        \u2022 Film and TV<br>\n        \u2022 Music, performing, and visual arts<br>\n        \u2022 Video games\n      <\/td>\n    <\/tr>\n    <tr>\n      <td style=\"border: 1px solid #ccc;padding: 8px\">Defence<\/td>\n      <td style=\"border: 1px solid #ccc;padding: 8px\">\n        \u2022 Combat air<br>\n        \u2022 Complex weapons<br>\n        \u2022 Directed energy<br>\n        \u2022 Drones and autonomous systems<br>\n        \u2022 Maritime capabilities\n      <\/td>\n    <\/tr>\n    <tr style=\"background-color: #fafafa\">\n      <td style=\"border: 1px solid #ccc;padding: 8px\">Digital and technologies<\/td>\n      <td style=\"border: 1px solid #ccc;padding: 8px\">\n        \u2022 Advanced connectivity technologies<br>\n        \u2022 Artificial intelligence<br>\n        \u2022 Cybersecurity<br>\n        \u2022 Engineering biology<br>\n        \u2022 Quantum technologies<br>\n        \u2022 Semiconductors\n      <\/td>\n    <\/tr>\n    <tr>\n      <td style=\"border: 1px solid #ccc;padding: 8px\">Financial services<\/td>\n      <td style=\"border: 1px solid #ccc;padding: 8px\">\n        \u2022 Asset management and wholesale services<br>\n        \u2022 Capital markets and retail investment<br>\n        \u2022 Fintech<br>\n        \u2022 Insurance and reinsurance markets<br>\n        \u2022 Sustainable finance\n      <\/td>\n    <\/tr>\n    <tr style=\"background-color: #fafafa\">\n      <td style=\"border: 1px solid #ccc;padding: 8px\">Life sciences<\/td>\n      <td style=\"border: 1px solid #ccc;padding: 8px\">\n        \u2022 BioPharma<br>\n        \u2022 MedTech\n      <\/td>\n    <\/tr>\n    <tr>\n      <td style=\"border: 1px solid #ccc;padding: 8px\">Professional and business services<\/td>\n      <td style=\"border: 1px solid #ccc;padding: 8px\">\n        \u2022 Accounting, audit and tax consultancy<br>\n        \u2022 Legal services<br>\n        \u2022 Management consultancy\n      <\/td>\n    <\/tr>\n  <\/tbody>\n<\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><br>Focusing UK R&amp;D on long-term economic growth<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The strategy commits to increasing public sector funding in R&amp;D, with public investment targeted at the IS-8 reaching \u00a320.4 billion in 2025\/26 and then growing to \u00a322.6 billion by 2029\/30.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This funding will come in the form of ten-year budgets (now longer to better reflect realistic R&amp;D life cycles). The first recipients of the ten-year budgets will be the Aerospace Technology Institute, the DRIVE35 programme for automotive, the National Quantum Computing Centre, and the Laboratory of Molecular Biology.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The government will look to incentivise collaboration between industry and academia by expanding the AI Research Resource (a cluster of supercomputers) by at least twenty times by 2030 along with the launch of a new R&amp;D Missions Accelerator Programme with \u00a3500 million of funding behind it.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.ukri.org\">UK Research and Innovation (UKRI)<\/a> will also align its programs and budgets with the IS-8 priorities, focusing on innovation, commercialisation, and scale up across the UK.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Targeting regional support to boost innovation within the IS-8 sectors<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The government says it will be targeting regions in the UK that support the IS-8 sectors to \u201cincrease national productivity, strengthen our economic security and resilience, and support our environmental goals and the net zero transition.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As part of this, there will also be \u00a3500 million available for the <a href=\"https:\/\/www.ukri.org\/news\/new-fund-will-focus-research-investment-on-local-priorities\/\">Local Innovation Partnerships Fund<\/a> to support high-potential innovation clusters across the UK, aiming to attract \u00a31 billion in private investment and \u00a3700 million in economic value for local economies.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>If you enjoyed this article, you might also like:<\/em><\/p>\n\n\n\n<div class=\"wp-block-leyton-orion-block-list list-block undefined\"><div class=\"container\"><div class=\"row\"><div class=\"col\"><ul><li><a href=\"https:\/\/majjane.leyton.com\/uk\/insights\/articles\/uk-governments-industrial-strategy-what-it-means-for-businesses-on-energy-costs-and-grants\/\"><em>UK Government\u2019s Industrial Strategy: What It Means for Businesses on Energy Costs and Grants<\/em><\/a><\/li><li><a href=\"https:\/\/majjane.leyton.com\/uk\/insights\/articles\/will-the-governments-corporate-tax-roadmap-drive-business-investment-in-the-uk\/\"><em>Will the government\u2019s Corporate Tax Roadmap drive business investment in the UK?<\/em><\/a><\/li><\/ul><\/div><\/div><\/div><\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>The recently launched Industrial Strategy is the government\u2019s latest way of setting out its economic priorities. Like the earlier Corporate Tax Roadmap, the strategy hopes to give the business community certainty while helping to lay the groundwork for growth and investment. In its own words: \u201cIt is robust, strategic, and unashamedly long-term: a 10-year plan [&hellip;]<\/p>\n","protected":false},"author":146,"featured_media":1931,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[107,109,112,138],"tags":[624,532],"expertise":[],"class_list":["post-1854","article","type-article","status-publish","format-standard","has-post-thumbnail","hentry","category-business-update-en","category-capital-allowances","category-creative-tax-relief","category-rd-tax-credits","tag-innovation","tag-rd-en"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.1 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How the Industrial Strategy looks to boost R&amp;D, drive innovation and deliver long-term growth - Leyton United Kingdom<\/title>\n<meta name=\"description\" content=\"The recently launched Industrial Strategy is the government\u2019s latest way of setting out its economic priorities.Like the earlier Corporate Tax Roadmap, Discover how the UK government\u2019s Industrial Strategy aims to boost R&amp;D, drive innovation, &amp; deliver long-term economic growth in the UK.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/leyton.com\/uk\/insights\/articles\/how-the-industrial-strategy-looks-to-boost-rd-drive-innovation-and-deliver-long-term-growth\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How the Industrial Strategy looks to boost R&amp;D, drive innovation and deliver long-term growth\" \/>\n<meta property=\"og:description\" content=\"The recently launched Industrial Strategy is the government\u2019s latest way of setting out its economic priorities.Like the earlier Corporate Tax Roadmap, Discover how the UK government\u2019s Industrial Strategy aims to boost R&amp;D, drive innovation, &amp; deliver long-term economic growth in the UK.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/leyton.com\/uk\/insights\/articles\/how-the-industrial-strategy-looks-to-boost-rd-drive-innovation-and-deliver-long-term-growth\/\" \/>\n<meta property=\"og:site_name\" content=\"Leyton\" \/>\n<meta property=\"article:modified_time\" content=\"2026-07-26T14:37:39+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/leyton.com\/wp-content\/blogs.dir\/9\/files\/2025\/07\/Website-articles-11.webp\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1229\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/webp\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/leyton.com\\\/uk\\\/insights\\\/articles\\\/how-the-industrial-strategy-looks-to-boost-rd-drive-innovation-and-deliver-long-term-growth\\\/\",\"url\":\"https:\\\/\\\/leyton.com\\\/uk\\\/insights\\\/articles\\\/how-the-industrial-strategy-looks-to-boost-rd-drive-innovation-and-deliver-long-term-growth\\\/\",\"name\":\"How the Industrial Strategy looks to boost R&amp;D, drive innovation and deliver long-term growth - 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