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UK sets 2026 brief for Industrial Strategy Council

Ministers have set the 2026 work programme for the Industrial Strategy Advisory Council. In a letter dated 2 December 2025, Chancellor Rachel Reeves and Business and Trade Secretary Peter Kyle ask the council to focus on three fronts: sector Jobs Plans and skills, rigorous monitoring of delivery, and market dynamism. The note ties this to the growth mission and says GDP per head could be about £15,000 higher had pre‑crisis productivity persisted. ([assets.publishing.service.gov.uk](Link

The mandate sits within the 10‑year Industrial Strategy launched in June 2025, which targets eight growth‑driving sectors: advanced manufacturing, clean energy industries, creative industries, defence, digital and technologies, financial services, life sciences, and professional and business services. ([gov.uk](Link

On skills, ISAC is asked to help shape sector Jobs Plans and strengthen the domestic pipeline so firms can hire locally for growth‑critical roles. ([assets.publishing.service.gov.uk](Link

Two outputs follow: a map of skills needs by sector and place, and by summer 2026 options to lift employer training investment. ([assets.publishing.service.gov.uk](Link

Monitoring becomes a standing duty. ISAC will support the Treasury and the business department, improve sector data and refine an impact pathway to track what works. ([assets.publishing.service.gov.uk](Link

The first market‑dynamism project focuses on clean energy and defence, with ISAC acting as strategic adviser and providing advice by April 2026. ([assets.publishing.service.gov.uk](Link

The council is also asked to publish a public report within a year and to work with counterparts in Japan and France as it builds the evidence base. ([assets.publishing.service.gov.uk](Link

ISAC is chaired by Microsoft executive Dame Clare Barclay with Professor Dame Nancy Rothwell as deputy. Members include Dame Anita Frew of Rolls‑Royce and Octopus Energy’s Greg Jackson, and ministers have said they will put the council on a statutory footing. ([gov.uk](Link

For business leaders, the practical takeaway is a clearer timetable for engagement. Jobs Plans should translate into explicit expectations on employer commitments by sector, so HR and finance teams should test training budgets, apprenticeship routes and college partnerships ahead of the summer window.

Clean energy and defence suppliers should assemble case studies on regulation and procurement hurdles before the April advice window. If those cases are persuasive, the near‑term wins are likely to be targeted fixes that cut approval times and align public spending with proven technologies.

The letter flags place‑based barriers, including city productivity slowdowns and transition pressures in carbon‑intensive areas, signalling cluster‑specific recommendations rather than one national fix. ([assets.publishing.service.gov.uk](Link

Momentum looks healthy but must convert into productivity. Since launch, the government says commitments topping £250 billion have been secured across the eight sectors, linked to 45,000 jobs; 2026 will show if that pipeline turns into lasting gains. ([gov.uk](Link

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