The UK government has launched a £275 million investment in technical training and apprenticeships as the centrepiece of its long-awaited industrial strategy, aiming to tackle deep-rooted skills shortages and reclaim the manufacturing vote in Labour’s traditional heartlands.
The funding package, unveiled by business secretary Jonathan Reynolds on Sunday, will support the creation of technical excellence colleges, deliver short courses in artificial intelligence and digital manufacturing, and finance capital upgrades to training centres across England. The initiative is pitched as a strategic counter to Reform UK’s surge in post-industrial constituencies, where Nigel Farage has promised to restore Britain’s industrial might and tighten immigration.
“Our modern industrial strategy will be powered by investing in British people,” said Reynolds.
“It will help transform our skills system to end the over-reliance on foreign labour, and ensure British workers can secure good, well-paid jobs in the industries of tomorrow and drive growth and investment right across the country.”
Although the announcement is not a full industrial funding package, ministers are presenting it as a foundational element of a broader 10-year economic plan, due to be detailed in full later this week.
Officials said the investment would target persistent skills gaps in engineering, defence, battery production, and advanced manufacturing, helping Britain build a pipeline of homegrown talent to support growth sectors.
The £275m pledge includes around £200 million earmarked for infrastructure and course delivery, while the remainder will support curriculum development, recruitment, and employer partnerships. The strategy responds to alarming figures showing one in seven young people are not in education or employment, and a 19% decline in apprenticeship starts since 2016.
Education secretary Bridget Phillipson described the move as a necessary “economic and social reset”.
“Skills rightly run right through the heart of this industrial strategy because they are key to breaking the link between background and success for young people,” she said.
The plan builds on previous pledges, including a £187 million AI skills package announced during London Tech Week, and a £3 billion apprenticeship fund to deliver 120,000 placements across healthcare, carpentry, and construction.
The timing of the announcement is politically significant. With Reform UK polling strongly in red wall constituencies, Labour is under pressure to shore up support in regions disproportionately affected by automation, outsourcing, and underinvestment.
Ministers hope the skills package will send a signal that Labour is serious about reviving domestic industry and providing pathways to high-quality jobs, especially in manufacturing strongholds across the Midlands and the North.
However, some in the business and education sectors say the scale of new funding is relatively modest, especially when spread over four years. Labour may face calls to go further on reforming the apprenticeship levy, addressing the immigration skills charge, and lowering energy costs for energy-intensive industries.
The government is also expected to unveil a new trade strategy later this week, with a focus on exports, supply chains, and making the UK “the best-connected place in the world to do business”.
Industry groups have welcomed the direction of travel. Rain Newton-Smith, chief executive of the Confederation of British Industry (CBI), said: “Competitive energy prices, fast-tracked planning decisions and backing innovation will provide a bedrock for growth.”
Stephen Phipson, head of manufacturers’ group Make UK, called the announcement a “giant and much-needed step forward”.
“The strategy sets out plans to address all three of the sector’s key frustrations — the skills crisis, crippling energy costs, and difficulty accessing capital,” he said. “Clearly there is much to do as we move towards implementation, but this will send a message across the country and around the world that Britain is back in business.”
As the industrial strategy unfolds, attention will turn to whether Labour can translate its vision into measurable change — and whether this initial investment is enough to shift momentum in regions still waiting for a long-promised industrial renaissance.
