Interview with H.E. Ambassador Laura Davies - UK Industrial Strategy
What is the UK Industrial Strategy and why was it developed?
Our Industrial Strategy sets out a new approach for a new era. It’s a strategic and unapologetically long-term document — a 10-year plan to make the UK the most attractive destination for investment globally. What I like most about it is that it is totally integrated with wider policy goals, so it is designed to achieve growth that also contributes to economic resilience and moves us along the path to net zero. Also, it makes a clear choice to focus on eight specific sectors, that we think are most likely to contribute to growth.
In drawing up the Strategy, the Government took a hard look at every aspect of the business environment to make it easier and faster for high-growth companies to invest. We assessed the international landscape to identify the most promising trade opportunities. And we looked inward at government itself, aiming to transform the state into the best possible partner for business.
How does the UK Industrial Strategy aim to boost productivity and economic growth?
In a nutshell, by making it easier for businesses to invest and grow in the UK.
What that means in practice is unlocking billions in financing for innovative businesses, with a particular focus on start-ups and scale-ups. Also reducing the administrative burden of regulation. Increasing R&D investment to €26 billion annually to drive innovation. And spreading support right across the whole country. That’s just to name a few examples...
And all of it is in the context of a foreign and trade policy which champions free and fair trade, where we are doing our best to remove barriers for exporters and importers.
What are the eight priority sectors outlined in the Industrial Strategy?
The strategy chooses to focus energy on eight sectors where the UK is already strong, and where there is big potential for future growth. All have strong relevance for Finnish businesses. They are: Advanced Manufacturing, Clean Energy Industries, Creative Industries, Defence, Digital and Technology, Financial Services, Life Sciences, and Professional and Business Services. Each of the eight high-growth sectors has its own dedicated sector plan, detailing the actions and investments that will drive growth, support innovation, and prepare each sector for international expansion.
How should the UK’s industrial strategy evolve to strengthen national economic interests and competitiveness in the face of shifting global trade rules and growing geopolitical competition?
Like everyone, the UK is navigating choppy waters—global trade uncertainty, inflation, and labour market shifts caused by AI. Yet we remain a resilient, innovative, and globally connected economy.
We are the fourth largest importer and exporter globally, the fifth largest global investor and the third biggest destination for investment, as well as the top destination for investment from Europe and the US. We’re very active on trade diplomacy, with new deals secured with the EU, India, and the US, and strategic partnerships with Germany, the US, and Taiwan.
This Strategy is a 10-year plan designed to keep the UK a place where businesses thrive. By taking a long-term approach, we are aligning with the ambitions of businesses, investors, inventors, and entrepreneurs who are shaping the future in Britain.
How does the UK’s commitment to deepening cooperation with the EU—particularly through potential participation in the internal electricity market, regulatory exchanges on new energy technologies, and aligning Emissions Trading Schemes—support its broader Industrial Strategy objectives related to energy security, decarbonisation, and competitiveness?
This is really important. The more we cooperate with the EU on energy and carbon pricing, the less red tape there will be, making cross-border trade more efficient and unlocking investment opportunities—such as joint projects in the North Sea. If we are serious about leading in advanced manufacturing, net-zero technologies, clean energy, and emerging fields like AI (and we are!), we must address the cost of industrial energy.
That’s why we are pursuing a long-term strategy to strengthen energy security and lower electricity costs. This includes investing in clean energy and deepening our integration with the EU energy market—steps that directly support our Industrial Strategy goals of decarbonisation, competitiveness, and sustainable growth.
Clean energy is an area where I see so much potential for cooperation with Finland, whether we are sharing our experience in offshore wind or collaborating on civil nuclear. Small Modular Reactors (SMRs) are a potential game-changer.
How does the UK tax system function as a tool of industrial policy to incentivise investment, innovation, and economic growth?
The UK’s corporate tax regime is really competitive: we have the lowest headline rate in the G7. There are also generous incentives for investment in both physical and intangible assets, R&D expenditure, and commercialising patents. And we’re committed to capping the corporation tax rate at 25%.
Government and business are never going to see eye to eye on taxation, but as part of the Industrial Strategy, we’re continuing to explore how the tax system can better support business ambitions, raising awareness of existing incentives and streamlining processes to help high-growth companies scale and succeed.
What does this all mean for Finnish companies in the UK or planning to enter the UK market?
I think it’s great news for Finnish companies. Our current trade figures are perfectly respectable, but clearly well below their potential. The Industrial Strategy shows how we can grow trade and investment further.
The UK is a 3.11 trillion-euro economy, making it the second largest in Europe, and a market of 68 million people. A survey of global CEOs recently ranked it as the most attractive location for investment in Europe. We’re already the sixth most innovative economy globally (just ahead of Finland) and committed to increasing that innovation. That’s why the Government is committed to investing over €23 billion in R&D in 2025-26 - and more beyond that.
The UK is also the largest VC market in Europe with nearly €14 billion raised in 2024, and first in Europe when it comes to the value of the start-up ecosystem (€1.04 trillion in 2024). There are more than 140 science parks, and more than 700 start-up accelerators and incubators in the UK, fostering new innovative companies and helping commercialise innovations. This makes us a great match for Finnish innovation, an easy place to land, and the perfect bulkhead for further global expansion.
When Finnish companies ask me for advice, I say: be confident. You have extraordinary solutions to offer! Enter the UK market with a local subsidiary, and don’t be shy of marketing your breakthroughs. An easy first step is to register on our Expand Your Business website. This will give you access to loads of information about the UK market. Almost every week, I hear of a Finnish company that has won a UK contract, or a UK company that is selling into Finland: why not join them?
H.E. Ambassador Laura Davies
Info.Helsinki@fcdo.gov.uk