What the 2025 Autumn Budget means for UK industry

A breakdown for manufacturers, engineers and industrial communicators

This week the Autumn Budget Statement was presented to Parliament by Chancellor of the Exchequer Rachel Reeves. Alongside key changes to tax thresholds, pensions, and plans to cut personal energy bills, there are significant implications for businesses in the UK’s industrial ecosystem.

With an opening statement of ‘We are rebuilding our economy’ Reeves laid out plans for investment in manufacturing and industrial sectors. This came alongside reduction in business costs that aligns closely with the ambitions set out in the UK’s new Industrial Strategy from earlier this year.

We have identified the key points you should know:

Cutting costs for manufacturers

One of the most notable points for industry is the decision to cut electricity prices for some manufacturing businesses. For energy-intensive sectors like steel, chemicals and metals the government has increased the generosity of the Supercharger Scheme starting in April 2026. The scheme will now raise Network Charging Compensation from 60% to 90% of certain network charges for eligible firms.

The budget also included a 40% first-year allowance (FYA) for new main-rate plant and machinery from January 2026, alongside a cut in the Writing-Down Allowance (WDA) from 18% to 14% from April 2026 with the intent to encourage investment.

Strategic investment into key sectors

The 2025 Industrial Strategy set out eight priority sectors (the IS-8). This Budget directly amplifies that focus with targeted investments in defence, technology, and clean energy.

Three new AI Growth Zones have been confirmed in the North East, North Wales, and South Wales, adding to the already-announced Oxfordshire. Dedicated resources in these zones will help drive innovation, create high-skilled jobs, and strengthen the UK’s position as a leader in AI.

The Government is aiming to support UK automotive manufacturers by extending funding for the Drive35 programme. A further £1.5 billion has been allocated to support large-scale capital investment in the manufacture of zero-emission vehicles. This takes total funding to £4 billion over the next 10 years.

A new National Wealth Fund will make a total of £27.8 billion in public capital available to invest in a range of high-value projects across the clean energy, advanced manufacturing, digital and technology, and transport sectors. This is specifically designed to support the delivery of the Industrial Strategy.

Clean energy

The last spending review announced £14.2bn of investment in the planned Sizewell C nuclear-power plant in Suffolk. The new budget has gone further, to cement nuclear power as central to the future of energy security and net zero. It includes promises to continue identifying potential sites for large-scale nuclear power projects.

Another measure is a commitment to rebuilding Britain by reforming planning rules and fast-tracking 150 planning decisions on major infrastructure by the end of this Parliament in 2029. The goal is to unlock development of major solar farms in East Yorkshire, and wind farms in the Irish Sea. This comes alongside key investment pledges across Scotland:

• A £62.1 million loan from the National Wealth Fund for Orkney Islands Council’s six-turbine wind farm at Quanterness.
• £17.3 million further government funding to boost the Aberdeen Energy Transition Zone.
• Establishing a new government campus for energy in Aberdeen, including Great British Energy’s headquarters.

Meanwhile, Wales is set to benefit from up to 20,000 clean energy jobs by 2030. Pembrokeshire will benefit directly from a skills pilot scheme which will support people in local communities to get jobs in clean energy.

What does this mean?

Taken together, the Autumn Budget and the Industrial Strategy point to a supportive environment for UK industry. Businesses across engineering, automation, energy, manufacturing, and digital technology can expect more options for green energy, greater incentives to invest and stronger regional industrial support. In return, the Chancellor no doubt expects industry to take the steps needed to boost productivity and growth.