Comment: The UK’s newly launched Modern Industrial Strategy is creating fresh opportunities for Irish companies

In my five years here, even when the political relationship was strained, I’ve been struck by the intense cooperation between UK and Irish businesses.

That speaks to a wider truth: our two nations have always been more than just neighbours – we’re partners with shared histories and intertwined futures. That’s why the UK’s Modern Industrial Strategy, published this week, is a great opportunity for Irish enterprise.

The UK is embarking on an ambitious and overdue economic renewal. We aim to deliver the highest sustained growth in the G7, creating jobs and higher living standards across every part of the UK, including Northern Ireland.

The new 10-year Modern Industrial Strategy is intended to back up words with action. Whether you’re an innovator in clean energy, a tech disruptor or a scaling life sciences business, our strategy can back you, not just today but for the longer term.

There’s a lot in there for Ireland. You’re the UK’s sixth largest trading partner, with two-way trade approaching €100bn a year.

Many Irish companies have substantial UK operations and are considering expansion. Others are eager to capitalise on the scale of the UK’s domestic market.

Early results for 2024-25 show that Irish companies launched more than 50 new investments in the UK, involving almost €2bn and creating 3,000 jobs.

The industrial strategy will make us an even better place to invest.

It focuses on eight sectors: advanced manufacturing, clean energy industries, creative industries, defence, digital and technologies, financial services, life sciences and professional and business services.

In most of those, Ireland/UK cooperation is already strong, and in all there’s scope to develop.

Sector plans have been released for advanced manufacturing, creative industries, clean energy industries, digital and technologies, professional and business services – with plans for life sciences, financial services and defence to come soon.

Each sector plan has been co-developed with business, with clear commitments from both government and industry based around shared priorities, creating a model for cross-border business engagement that could benefit Irish-UK trade relations.

We rank sixth in the world and third in Europe in the EY Renewable Energy Country Attractiveness Index

Take clean energy, where the UK is one of the world’s most important markets, attracting £2.6bn (€3bn) of clean tech investment in 2023. We rank sixth in the world and third in Europe in the EY Renewable Energy Country Attractiveness Index.

For Irish renewable companies looking to expand, our commitment to achieving at least 95pc clean power by 2030 represents substantial investment opportunities. We are building on the agreements in place between the UK and Ireland on energy security and energy transition to step up co-operation.

The government recognises high electricity prices as barriers to industrial activity and electrification, with plans to make UK energy prices more competitive and predictable.

Another example is digital and technology where the UK’s ecosystem is valued at more than $1tn, with over 160 tech unicorns, the highest number in Europe. Three great Irish companies were finalists in the European round of our inaugural Unicorn Kingdom Pathfinder Awards – Gallarus Industry Solutions, Biologit and Future Mobility Ireland, with Gallarus getting to the global final.

I’m confident they are pathfinders for many more to follow.

As well as a major focus on AI, quantum technology, cyber security and data, the industrial strategy specifically highlights digital and technology clusters concentrated in cities across the UK – including those close to Ireland, such as Cardiff and Bristol – creating natural locations for Irish-UK tech collaboration just across the Irish Sea.

Professional and business services (PBS) also offers substantial east-west and north-south opportunities for Irish firms. This covers legal services including accounting, management consulting and architecture, and contributes more than £225bn annually to the UK economy.

Irish professional service providers already benefit from streamlined regulatory frameworks and direct access to London’s financial hub while maintaining their EU market presence. With an ambitious strategy to double business investment in PBS from £30bn to £65bn by 2035, the UK is strengthening its position as “the world’s most trusted adviser to global industry”, a goal that benefits Irish firms with complementary specialties.

The government is committed to giving more powers to mayors and other local leaders

Our industrial strategy extends throughout the UK. The government is committed to giving more powers to mayors and other local leaders, helping to expand regional clusters that build on each UK region’s strengths, creating re-energised growth hubs with distinct specialisations ideal for Irish companies looking at opportunities across the entirety of the UK marketplace.

The embassy’s Joining the Dots programme is in its sixth year of connecting business outside Dublin and London to promote opportunities for growth.

Every CEO I meet emphasises the importance of access to talent and skills. We are addressing this through a range of initiatives, not least Skills England, ensuring people have the right skills for industries of the future.

Let’s make the UK/Ireland Common Travel Area a Common Talent Area as we do so. For example, we’re putting £400m into 16-19 years education with targeted funding for courses in engineering and digital skills to ensure a growing talent pool that can benefit integrated supply chains across Ireland and the UK.

Talking of talent, the embassy’s dedicated business and trade team is at your service to help you source high-quality goods and services from, and/or invest and grow in, your nearest neighbour. We look forward to hearing from you.

Paul Johnston is the British ambassador to Ireland