UK nations and regions
South West England
Hosting significant innovation initiatives supporting emerging SME clusters, South West England is at the forefront of cyber security, green tech, aerospace, marine and defence technologies.
The region is home to world-class assets including over 20 centres of excellence and 8 universities. It benefits from strategic geographic advantages, including Western Europe's largest naval base at Devonport and proximity to London. Major infrastructure investments include £4.4 billion for a Plymouth naval base and £752 million for public transport connectivity in the West of England.
Key facts for the South West
55 life sciences and healthcare companies
£143 million impact investment through climate tech and clean energy
4 universities specialising in creative industries
£100 million evergreen fund
55 foreign direct investment projects in 2024 to 2025
44% total value of deep tech investment in the first quarter of 2025
An Industrial Strategy for the whole of the UK
The modern Industrial Strategy is a new economic approach – a whole-of-government effort to back the UK’s strengths, with ambitious plans for 8 high-growth sectors (‘IS-8’) and the frontier industries at their leading edge, from quantum to pharmaceuticals. It is a 10-year plan, built on stability and openness, to make the UK the best country to invest in.
Building on the South West's strengths
The South West already has a huge amount to celebrate and the Industrial Strategy’s Sector Plans promote its wide-ranging strengths to investors.
Advanced manufacturing
The South West is home to the National Composites Centre in the West of England, and Somerset will be the future home of the Agratas Gigafactory. There is a significant Aerospace cluster featuring Boeing, Rolls-Royce, Airbus, BAE Systems, Leonardo Helicopters, Honeywell and GKN. Gloucestershire hosts leading agri-tech institutions in the Royal Agricultural University and Hartpury University & College.
Clean energy industries
Hinkley Point C has spent £5.3 billion with businesses in the South West, trained 14,000+, and supported 26,000 direct and indirect jobs in Great Britain. Plymouth and South Devon Freeport allocated £5.7 million to prep Langage site for a Green Hydrogen Hub. Cornwall has the opportunity to realise the benefits of its access to the Celtic Sea for both offshore and onshore wind. Independent bodies including Invest in Dorset and The Great South West prioritise clean energy industries as a source of growth for the region and have named the region the 'Dorset Clean Energy Supercluster'.
Creative industries
Home to the UK's third-largest production hub, a global centre for natural history filmmaking, and film tourism hotspot. It also has facilities such as the BBC, Channel 4, The Bottle Yard Studios and Oscar-winning Aardman Animations and the new arena at the Brabazon site presents a major opportunity to elevate the region's music sector.
Defence
The South West has defence strengths including in combat air, space, cyber, complex weapons, next generation land and maritime capabilities, and drones and autonomous systems. It is home to England's longest-running Regional Defence and Security Cluster, with particularly prominent concentrations of industry and innovation in Plymouth and in the area from Bristol up to Cheltenham and Gloucester.
A key defence ecosystem has developed around HMNB Devonport, the largest naval base in Western Europe, and the Plymouth and South Devon Freeport. Plymouth is the National Centre for Marine Autonomy and home to Smart Sound, the UK's premier proving area for businesses to develop advanced technologies, with over 1000 square kilometres of highly monitored and deconflicted water. Plymouth boasts cutting-edge R&D capabilities, including in maritime technologies and drones, via assets such as the National Centre for Coastal Autonomy, the Thales Maritime Autonomy Centre and the University of Plymouth, and companies including MSubs and Babcock. Most recently Helsig AI has announced its intention to build its first UK Resilience Factory, producing specialised AI-powered underwater autonomous platforms.
The West of England is home to several leading space and aerospace companies, including Airbus and Boeing, with renowned universities and the National Composites Centre driving cross-sectoral innovation. A strong cyber sector extends to the area of Cheltenham and Gloucester and is soon to be bolstered by the Golden Valley development adjacent to Government Communications' headquarters (GCHQ).
Digital and technologies
The South West hosts the £225 million Isambard AI supercomputer at the National Composites Centre and key R&D infrastructure including Smart Internet Lab and Compound Semiconductor Applications Catapult's Future Telecoms Hub. It is also home to co-located facilities including Bristol Digital Futures Institute, Quantum Technology Innovation Centre, and Temple Quarter Enterprise Campus, unlocking convergence between technologies.
Foundational industries relevant to IS-8 supply chains
There are critical minerals clusters in Cornwall and Devon and The National Composite Centre is in Bristol. The South West has a number of ports and a construction sector.
Driving regional growth in the South West
The Industrial Strategy introduces ambitious policies to drive growth and investment across every nation and region of the UK. This is a 10-year strategy which will be a living document. We want to continue to work with local government, Mayoral Strategic Authorities and devolved governments to ensure they can drive growth across the UK.
More policies will be delivered over time, but below are some of the specific interventions in the South West that form part of our strategy.
Locally targeted investments in the IS-8 growth driving sectors
- £4 billion over the next decade invested into Plymouth naval base, as well as continued long-term investment in our Defence Nuclear Enterprise and its industrial base
- The West of England Combined Authority (WECA) will receive devolved funding from the £150 million Creative Places Growth Fund to support creative businesses and freelancers in their region
Tools to help city regions and clusters attract private investment
- A British Business Bank Cluster Champion – the British Business Bank will invest in high-potential firms in the IS-8 clusters through a £100 million expansion of its Nations and Regions Investment Funds, and appoint a new 'Cluster Champion' for the region
- £25 million in capital funding for the Plymouth and South Devon Freeport
Better connections between city regions and clusters
- £752 million to improve public transport connectivity in the West of England. This includes £150 million to improve rail infrastructure across the region, with funding to support WECA's ambitions for increased frequency of services between Brabazon and the city centre, and £200 million for mass transit development between Bristol, Bath, South Gloucestershire and North Somerset