The Department for Business and Trade has published the UK’s Modern Industrial Strategy, which sets out the government’s ten-year plan to make the UK a better place to do business. The full paper can be accessed here.
The policy paper, published on 23 June, aims to address the challenges faced by businesses in the “new era” of an uncertain world. The strategy sets out plans for improving conditions for companies to do business, with the aim of giving them the stability to make long-term investments. The plan recognises eight highest-potential sectors known as the IS-8, which the government has identified as priority areas (advanced manufacturing, creative industries, clean energy, life sciences, defence, digital and technologies, financial services, and professional and business services), and introduces sector-specific initiatives, as well as general objectives to improve the business environment.
The strategy recognises a need for the UK to invest more in economic security and resilience. This includes the launch of a 12-week consultation to review and update the definitions of the 17 sensitive sectors currently subject to mandatory notification under the National Security and Investment Act 2021 (NSIA). The consultation will propose targeted amendments to the NSIA to ensure that regulatory requirements remain proportionate to maintain safeguards to national security while minimising burdens to business and supporting growth. The strategy also states that the government will shortly announce specific new exemptions to the mandatory regime.
The strategy includes reducing regulatory burdens on business so that regulation supports growth, is proportionate, is transparent and adapts with innovation. One of the proposed interventions is the simplification of corporate reporting requirements as part of measures to streamline and modernise company law. To support inward investment, the government will seek to explore how to make it easier for foreign companies to move to the UK and will also consult on designing and implementing a UK corporate re-domiciliation regime.
The government commits to unlocking the full potential of competition to increase economic growth, having given the CMA a new “strategic steer” that it should promote growth (please see our article here). The government intends to work with the CMA to improve the markets regime and will also consult on further competition law reforms to create more certainty for business, including changes to merger jurisdiction tests. The government also seeks to review the impact and proportionality of the subsidy control regime. In the summer 2025, the government intends to increase the threshold at which subsidies must be referred to the CMA for review (from £10 million to £25 million – although for some sensitive sectors the threshold will remain at £5 million). The expectation is that the CMA will publish its independent report on the effectiveness of the subsidy control regime in 2026.
The strategy is described as one of “stability, investment, and reform” and it remains to be seen what legal frameworks will be developed to achieve the government’s broad objectives. Mills & Reeve’s competition team has extensive experience advising organisations on competition law issues and the NSIA. If you have any specific questions or need further guidance, we’d be delighted to hear from you.
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