UK Government’s Industrial Strategy Signals Major Boost for Welsh Fintech and Innovation Sectors
The UK Government has unveiled a new 10-year industrial strategy aimed at slashing electricity costs, unlocking billions in investment, and accelerating growth in key sectors across the UK—including fintech and digital innovation in Wales.
Among the most significant changes is a commitment to reduce electricity costs by up to 25% for over 7,000 electricity-intensive businesses. This includes Port Talbot’s Tata Steelworks, which will benefit from the installation of a new electric arc furnace by 2028. The initiative is part of a wider plan to strengthen British manufacturing and global competitiveness under the newly announced British Industrial Competitiveness Scheme.
The strategy promises to address longstanding barriers to growth, cut regulatory burdens, and channel significant investment into cutting-edge industries. It pledges support for more than 300,000 skilled jobs, while making the UK a more attractive destination for domestic and international business investment.
Key Measures for Wales
The strategy outlines eight core initiatives tailored to Wales’ economic strengths:
- Over £4 billion investment into the UK’s advanced manufacturing sector over the next five years.
- A new semiconductor-focused doctoral training centre led by Swansea University.
- A defence growth deal cluster building on Wales’ existing capabilities.
- Establishment of a British Business Bank champion in the Cardiff Capital Region.
- £30 million for local innovation partnerships in collaboration with the Welsh Government and Innovate UK.
- Collaboration between the National Wealth Fund and the Development Bank of Wales to secure investment for major projects.
- A £600 million Strategic Sites Accelerator to enhance investible site supply in city regions and clusters.
- Strengthened support from the UK’s Office for Investment to identify and deliver strategic projects across the country.
Fintech Sector Welcomes Long-Term Vision
Sarah Williams-Gardener, Chair of Fintech Wales, responded to the announcement:
“We are delighted to see financial services recognised as a key sector in this Industrial Strategy. We look forward to working closely with the Government to help unlock the sector’s full potential. The emphasis on AI and the compute power required to support its development is particularly welcome, as we begin to see generative AI driving innovation across financial services—empowering both providers and customers through the next generation of digital banking platforms.
We are especially keen to understand how this strategy will support the thriving fintech and financial services sector in Wales. A recent example is Starling Bank’s launch of its Spending Intelligence feature—a UK first that allows customers to interact with their spending data using natural language and AI. This innovation was proudly led by Starling’s Cardiff-based team.”
Louise Harris, CEO of Tramshed Tech in Cardiff, also welcomed the strategy:
“By aligning local strengths with national ambition, this strategy provides a powerful platform for Welsh businesses to grow, attract investment and lead in emerging sectors such as technology, advanced manufacturing, and creative industries.”
A Strategic Step Forward
Prime Minister Keir Starmer described the new strategy as “a turning point for Britain’s economy,” promising long-term certainty for businesses and industries poised for growth.
The strategy’s focus on aligning national priorities with regional strengths has been widely welcomed across Wales, with particular enthusiasm from fintech, advanced manufacturing, and digital innovation leaders.
FinTech Wales will continue to monitor the rollout of the strategy and its implications for the Welsh fintech ecosystem.