Regional Industry

The next British prime minister must place industry at the heart of the clean energy transition.

Based on the analysis of Net Zero North West CEO Jane Gaston, this explores the integration of the UK's industrial strategy with the clean energy transition: reindustrialization must be rooted in existing industrial clusters, and regional growth and decarbonization are inseparable.

Redirecting UK Industrial Strategy: Industry as the Core Engine of Clean Transition

Around the economic agenda of the UK's next prime minister, industry is sending a clear signal: economic growth and decarbonization are not a zero-sum game. In a recent commentary, Jane Gaston, CEO of Net Zero North West, points out that reindustrialization, sovereign capacity building, and clean energy transition are pointing in the same direction—placing industry at the heart of policy.

This proposition is not an empty call. North West England, as the UK's most densely industrial region, contributes £270.8 billion in gross value added, generates £68.5 billion in exports, and supports 337,000 manufacturing jobs. The region clusters chemicals, pharmaceuticals, advanced engineering, transport, and energy, directly affecting national economic resilience and long-term competitiveness.

Reindustrialization must strengthen existing strengths

Greater Manchester Mayor Andy Burnham's recent speech on reindustrialization has reignited a national debate on regional devolution and locally driven growth. Gaston argues that true reindustrialization cannot be separated from the existing industrial base. If the UK wants to enhance its sovereign capacity, it must first consolidate and expand those industrial ecosystems that already have global competitiveness.

The case of the North West shows that industrial policy should not only chase new investments but also nurture existing industrial clusters. These clusters are not just centers of economic output; they are guarantees of energy security, supply chain stability, and export competitiveness. Ignoring them would render reindustrialization a castle in the air.

Clean transition and industrial competitiveness are mutually prerequisite

A common misconception is that industrial growth must be traded off against decarbonization goals. Gaston points out that the business view is different: manufacturing, energy, and infrastructure sectors generally recognize that decarbonization holds huge opportunities. The key is to create long-term investment confidence—including reliable and affordable energy, modern infrastructure, policy certainty, and supply of skilled talent.

Industrial decarbonization is not a simple environmental goal but a strategic economic priority. If the UK only builds clean electricity infrastructure but lets domestic industry shrink due to energy costs or policy uncertainty, the transition will lose its industrial foundation. Similarly, industry lacking clean, low-cost energy cannot sustain growth. The two are interdependent.

Regional growth and skills challenge

The North West, through cross-sector collaboration like Net Zero North West, has already demonstrated the potential of localized growth models. However, skills shortages are threatening this process. Data shows that in the region's manufacturing sector, there are 17,655 fewer workers aged 25-34 than workers aged 50-59. Without increased investment in technical education and vocational training, the skills gap will weaken both industrial competitiveness and the clean transition capability.

Gaston calls for using public procurement to strengthen domestic supply chains, allowing more local businesses to benefit from major investment projects while creating high-skilled jobs. This requires coordination across energy, infrastructure, planning, utilities, skills, and industrial policies.

Conclusion: One missionAndy Burnham’s reindustrialization vision provides an important framework for debating the future of the UK economy. But the key lies in turning ambition into an executable long-term industrial strategy, empowering regions with the tools to act, and giving businesses the confidence to invest. The Northwest has already proven that industrial clusters can simultaneously support sovereign capabilities and the clean energy transition. The next prime minister should not view industry and energy transition as competing priorities—they are the same mission. Only by grasping this can the UK build not only a cleaner economy, but also a stronger, more resilient, and more competitive country.

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