The Changing Landscape of the UK Industry Sector

The UK has long been known for its robust and diverse industry sector, which has played a pivotal role in driving economic growth and creating employment opportunities. 

However, like any dynamic sector, the UK industry landscape is subject to constant evolution. 

In this article, we will explore the current state of the industry sector in the UK, including recent laws and data that are shaping its trajectory. 

Overview of the UK Industry Sector 

The industry sector in the UK encompasses a wide range of activities, including manufacturing, construction, energy, and technology. 

It has traditionally been one of the pillars of the UK economy, contributing significantly to GDP (17.49% came from the manufacturing industry in 2021) and employing millions of people across the country. 

However, it is important to note that the industrial sector alone is responsible for 19% of greenhouse gas emissions in the UK. 

In 2021 it was directly responsible for emitting 9.4 Gt of CO2, accounting for a quarter of global emissions. 

While progress has been made in this sector since the 1990s, the manufacturing industry (part of the industrial sector) alone produced 78.4 million metric tons of carbon dioxide emissions in 2020 just in the UK. 

Nonetheless, there has been a reduction of over 40% in manufacturing industry emissions compared to 1990 levels. 

Current Laws and Regulations in the Industry Sector in the UK 

To ensure the smooth functioning of the industry sector, the UK government has implemented several laws and regulations that govern various aspects of industrial operations. 

One notable legislation is the Health and Safety at Work Act 1974, which sets out the legal framework for managing health and safety in the workplace. It places a duty on employers to ensure the safety, welfare, and well-being of their employees. 

In recent years, there has been an increased focus on environmental sustainability and reducing carbon emissions. The UK government has set ambitious targets to achieve Net Zero greenhouse gas emissions by 2050. 

To support this goal, the Industrial Decarbonisation Strategy was launched in March 2021, outlining the government’s plans to decarbonise key industrial sectors such as power, energy-intensive industries, and manufacturing. This strategy includes measures like supporting the development of low-carbon technologies and creating a market for renewable hydrogen. 

Another significant development is the Trade and Cooperation Agreement reached between the UK and the European Union (EU) in December 2020, following Brexit. 

This agreement outlines the terms of trade between the UK and the EU, including provisions for the industry sector. While the agreement provides a level of certainty for businesses, there have been some challenges in adapting to the new trading arrangements. 

Regulatory Framework and Financial Aid in the UK 

The UK industrial sector operates within a regulatory framework that encompasses various regulations and financial aid programs aimed at promoting sustainable practices, energy efficiency, and supporting industrial growth. 

Let’s explore the key aspects of the regulatory framework and financial aid available to the industrial sector in the UK. 

Regulatory Framework 

  • Environmental Permits and Regulations: The industrial sector is subject to environmental permits and regulations that ensure compliance with environmental standards, pollution prevention, and waste management. These regulations, enforced by the Environment Agency and other relevant bodies, aim to protect the environment and public health. 
  • Health and Safety Regulations: The Health and Safety Executive (HSE) regulates health and safety standards in the industrial sector. These regulations ensure the safety and well-being of workers, as well as the prevention of accidents and occupational hazards. 

Financial Aid and Support 

  • Research and Development (R&D) Tax Credits: The UK government offers R&D tax credits to businesses, including those in the industrial sector, engaged in eligible R&D activities. These credits provide financial incentives by allowing businesses to claim tax relief on qualifying R&D expenditure, fostering innovation and technological advancement. 
  • Grant Funding: Various grant funding schemes are available to support industrial businesses in the UK. These grants, provided by government bodies, local authorities, and other organisations, help fund projects focused on research, development, innovation, technology adoption, and sustainability initiatives. 
  • Regional Growth Funds: The UK government has established Regional Growth Funds to support economic growth and investment in different regions. Industrial businesses can access these funds to finance expansion, infrastructure development, skills training, and job creation initiatives. 

These are just a few examples of the regulatory framework and financial aid available to the UK industrial sector. 

The government continuously reviews and updates these measures to align with evolving priorities, sustainability goals, and economic growth objectives. 


The UK industry sector continues to evolve in response to changing economic, environmental, and technological landscapes. 

With the implementation of laws and regulations promoting safety, sustainability, and decarbonisation, the sector is poised to embrace a greener and more resilient future. 

As Europe’s largest energy consultancy, NGP is uniquely positioned to support the industrial sector in navigating the complexities of energy procurement. 

With a proven track record of managing energy portfolios for over 30,000 customers worldwide, NGP’s expertise and market intelligence help businesses achieve long-term stability and secure their future. 

NGP’s Flexible Energy Procurement service allows companies to benefit from the fluctuations in the wholesale market by purchasing smaller amounts of energy throughout their contracts. 

This innovative approach has already saved customers millions against government energy bill relief schemes, demonstrating its effectiveness. With over 93% accuracy in price forecasts, NGP offers a reliable solution for businesses in the industrial sector to manage their energy costs effectively and sustainably. Get in touch with us today to find out how we can help you.

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