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06 May 2026
3 minutes read

Advanced manufacturing update - May 2026

Explore the latest updates covering legal, policy and industry developments in advanced manufacturing. 

Expansion of the British Industrial Competitiveness Scheme (BICS)

BICS will cut energy costs for British manufacturers by 25% from 2027 by exempting businesses from mandatory payments under the Renewables Obligation, Feed-in Tariffs and Capacity Market Schemes. This is old news. What’s new is that an announcement from the chancellor on 15 April that the BICS scheme is being expanded by 40%. There is an open consultation (closes on 14 May) on the regulatory changes needed to deliver the exemptions.

UK manufacturing outperforms global peers on productivity

Research published in April, in time for National Productivity Week (27 April – 1 May), shows that from 2020 to 2025 UK manufacturing output grew by 6% despite a 4% decline in the workforce. According to The Manufacturer, this indicates “that companies are increasingly turning to automation, robotics and data-driven processes to improve efficiency.” This puts the UK “behind only South Korea (+34%), Spain (+14%), and India (+13%) among the world’s major manufacturing economies in productivity improvement since 2020.”

£80m government subsidy to establish Robotics Adoption Hubs

We're told that: “the new scheme will allow all organisation types (research organisation, public body, private business) to apply for grant funding of up to £10m in grant funding over the programme period (August 2026 to March 2030) through a funding competition. Each consortium will carry out research and development to create a self-sustaining robotics adoption hub (RAH) by the end of the projects.”

The purpose of the hubs is said to be: “to help end users understand and adopt robotics by identifying possible technologies and applications relevant to their organisation, outlining routes to procurement and integration and connecting them with vendors, integrators and financiers.”

Business secretary touts £700m investment in the advanced manufacturing sector

Peter Kyle told his audience at the Agratas car battery factory in Somerset that: “In an unstable world, our Modern Industrial Strategy is providing investors the stability and confidence they need to plan not just for the next year, but for the next 10 years and beyond. That is what sets us apart from the rest and will help ensure advanced manufacturing remains a thriving sector in the UK for decades to come.”

Regulatory Innovation Office consults robotics businesses about regulatory barriers to innovation

Robotics (along with defence technologies) was one of two sectors targeted by the Regulatory Innovation Office (RIO) “Front Door” project. The RIO describe this programme as “an experimental, business-led pilot…to collect and address regulatory challenges…enabling RIO to target reforms where they are most needed and to foster innovation and growth.” It will be interesting to see how this develops.

Surgeon in London operates on patient in Gibraltar, in UK’s first fully remote operation

As reported by the BBC, “The operation was performed from The London Clinic using a robot equipped with a 3D HD camera and four arms, all controlled through a console. The console…was connected to the robot in Gibraltar via fibre optic cables, with a backup 5G link.”

This is a good example of the government’s vision for robotics and process automation in action.

A useful webinar on robotics and process automation in the UK

Caroline France, the head of robotics and advanced materials innovation policy at The Department for Science, Innovation and Technology, told the audience that the UK government had five key missions for robotics and automation: 

  1. Boosting productivity
  2. Automating dull, dangerous and dirty tasks
  3. Keeping people safe
  4. Supporting and inspiring the next generation
  5. Driving hospital automation, surgery, rehab and social care

She also cited figures from the London School of Economics about the potential “gross value added” that could be created by 2035 by adopting robotics and autonomous systems in different sectors of the economy.

You can access the slides from the presentation here.

If you would like to discuss any of the matters in this update, or need legal advice connected to the development or deployment of AI please get in touch with our team of sector specialists

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