A MODERN Industrial Strategy aimed at making the UK the premier destination for business investment and growth has been unveiled today (Monday, June 23), promising billions in investment and tens of thousands of new jobs across Wales.

The comprehensive 10-year plan, published by the UK Government, will significantly reduce electricity costs for more than 7,000 energy-intensive businesses by up to 25%. This includes industries such as automotive, aerospace, steel, chemicals, and glass, sectors crucial to the Welsh economy.

High electricity prices, historically among the highest globally, have long hindered UK manufacturing competitiveness. From 2027, the new British Industrial Competitiveness Scheme will lower electricity costs by up to £40 per megawatt-hour for affected businesses, exempting them from levies such as the Renewables Obligation, Feed-in Tariffs, and Capacity Market fees.

Further support is also being offered through the British Industry Supercharger, raising the discount on electricity network charges from 60% to 90% starting in 2026. These initiatives aim to level the playing field, supporting firms to invest, grow, and safeguard skilled jobs.

Prime Minister Keir Starmer described the strategy as a “turning point” for the UK economy, stating: “In an era of global economic instability, this provides long-term certainty and direction British businesses need to innovate, invest, and create quality jobs. Our message is clear: Britain is back and open for business.”

Secretary of State for Wales, Jo Stevens, highlighted the specific benefits for Wales, saying: “Wales has huge potential. This strategy harnesses our businesses and workforce strengths, particularly in aerospace, semiconductors, and emerging industries like floating offshore wind, positioning Wales as a global leader.”

Key Welsh-specific measures include:

• Over £4 billion investment in the UK’s advanced manufacturing sector, significantly benefiting Welsh firms such as Airbus in Broughton, North Wales.
• Establishment of a semiconductor doctoral training centre at Swansea University, enhancing South Wales’ globally recognised semiconductor cluster.
• A Defence Growth Deal cluster leveraging Wales’ defence industry footprint.
• A new British Business Bank champion for Cardiff Capital Region, connecting businesses and investors to stimulate growth.
• A £30 million Local Innovation Partnerships Fund in collaboration with Innovate UK to spur innovation in Wales.
• Enhanced investment opportunities through the National Wealth Fund and Development Bank of Wales.
• A £600 million Strategic Sites Accelerator to increase investible sites and bolster regional growth.

Business and Trade Secretary Jonathan Reynolds emphasised the broader UK implications, noting: “We’ve secured £100 billion of investment in the past year alone. This Industrial Strategy will ensure the UK remains globally competitive by reducing energy costs, enhancing skills, and attracting billions for new business sites and research.”

Welcoming the strategy, Sarah Williams-Gardener, Chair of Fintech Wales, said: “We look forward to unlocking the full potential of financial services, especially the emphasis on AI and digital innovation.”

Frank Holmes, Chair of the Cardiff Capital Region Investment Board, added: “The renewed focus on industrial strategy and SME finance aligns with our regional vision, driving job creation and innovation.”

Louise Harris, CEO of Tramshed Tech in Cardiff, highlighted the strategy’s role in technology and innovation, stating: “Aligning local strengths with national ambitions will empower Welsh businesses to lead in sectors such as tech and advanced manufacturing, creating sustainable, high-quality jobs.”

The Industrial Strategy also includes sector-specific plans:

• Advanced Manufacturing: £4.3 billion funding to anchor supply chains and promote zero-emission technologies.
• Clean Energy: Doubling investments by 2035, including £700 million for clean energy supply chains.
• Creative Industries: £380 million to boost growth in film, TV, gaming, music, and arts.
• Digital and Technologies: Over £2 billion for AI and frontier technologies such as semiconductors in Wales.
• Professional and Business Services: Enhancing global trust and adoption of UK-grown AI technologies.

The plan aims to deliver over 1.1 million well-paid jobs nationwide, driving economic prosperity, raising living standards, and positioning Wales at the forefront of the UK’s growth ambitions.

Largest ferry to visit Fishguard as Stena Line commits to long-term upgrade

FISHGUARD Port is set for a major upgrade after ferry operator Stena Line announced a £20 million investment to replace the town’s ageing linkspan bridge.

The new infrastructure, described as “overdue” by the company, will provide increased flexibility and secure the long-term viability of the Pembrokeshire port, which serves the route to Rosslare in the Republic of Ireland.

Stena Line said it hopes construction on the new drawbridge-style linkspan will begin in 2026, with completion targeted for 2027. The company said the investment demonstrates a commitment to Fishguard for the next “30 to 40 years”.

Boost following Holyhead closure

Fishguard saw an unexpected increase in traffic in December 2024, after Storm Darragh damaged berthing terminals at Holyhead. The disruption meant freight traffic and ferries were redirected to Fishguard to relieve pressure on the Irish Sea route.

During this period, the Stena Adventurer — the largest ferry ever to visit the port — docked in Fishguard for the first time.

Ian Davies of Stena Line acknowledged that the new investment was long-awaited: “It’s overdue,” he said, but added that the upgraded linkspan would allow far more flexibility for vessels and scheduling in the years ahead.

Abandoned plans revived

A similar project to upgrade the port was cancelled in 2018, raising concerns locally about Fishguard’s future as a ferry terminal. At the time, tenders had already been invited for the build, but the scheme was scrapped unexpectedly.

The current single-lane linkspan, which dates back to the early 1970s, has been nearing the end of its working life for some time. Its replacement is expected to bring the port up to modern operational standards and support future vessel deployments.

Stena Line currently operates two roll-on roll-off ferry services per day between Fishguard and Rosslare.

The investment announcement has been welcomed by port users and the local community as a sign that the port will continue to play a key role in west Wales’ transport and economic infrastructure.

Qatari tankers could be blocked from reaching Wales if Gulf tension escalates

IRAN has voted to close the Strait of Hormuz, threatening to cut off LNG supplies to Milford Haven and raising the stakes in an already volatile Middle East crisis.

The vote, passed by Iran’s parliament on Sunday (June 22), comes in retaliation for recent US and Israeli airstrikes on Iranian nuclear and military infrastructure. While the decision has not yet taken effect, and must still be approved by Iran’s Supreme National Security Council and Supreme Leader Ayatollah Khamenei, the symbolic move has sent shockwaves through global energy markets.

The Strait of Hormuz is a narrow but vital shipping lane between Iran and Oman through which nearly one-fifth of the world’s oil and liquefied natural gas (LNG) exports flow. This includes the majority of Qatar’s LNG shipments—gas that arrives in Wales via Milford Haven, one of the UK’s most strategically important energy ports.

Senior Iranian military commanders have warned that retaliation is “already under way” and that the closure of the strait remains on the table as a military and economic weapon. General Esmail Kowsari of the Islamic Revolutionary Guard told Iranian media: “Closing Hormuz is under consideration… Our hands are wide open when it comes to punishing the enemy.”

A direct threat to Wales

Milford Haven’s two LNG terminals—South Hook and Dragon—receive regular shipments from Qatar’s Ras Laffan port. With Qatar entirely reliant on free access through Hormuz, any disruption, even temporary, could choke off Britain’s most reliable source of imported gas.

“This isn’t a theoretical risk,” a senior UK energy analyst told The Herald. “If the Strait closes, Qatar can’t deliver, and Milford Haven’s supply is directly impacted. It’s a sharp reminder that our energy security is still tied to global flashpoints.”

Shipping industry sources have reported increased GPS interference, spoofing signals, and navigation issues in the Gulf, raising concerns about potential Iranian sabotage or electronic warfare. Some LNG tankers have already begun rerouting or delaying travel through the area.

Economic impact already being felt

Global oil prices surged past $100 per barrel on Monday, while UK gas futures climbed sharply in early trading. Analysts warn that if the closure proceeds, prices could leap to $120 or more, with ripple effects across heating bills, manufacturing costs, and inflation.

“If Qatari tankers are forced to reroute around the Cape of Good Hope, it would add two weeks to shipping times and increase insurance and fuel costs,” said energy security expert Dr Leila Marwood of King’s College London. “That cost ends up hitting British consumers directly—especially in winter.”

Milford Haven’s terminals are equipped with local storage capacity, and contingency plans are being reviewed to manage supply shortfalls. However, alternative sources such as US or African LNG come with longer delivery times and higher prices.

Strategic wake-up call

Milford Haven plays a vital role in Britain’s energy infrastructure, with capacity to handle over 30% of the country’s gas needs during peak periods. Any sustained disruption would place further strain on a system already navigating post-Brexit import pressures, North Sea production decline, and the global transition to renewable energy.

One local port expert told The Herald: “This isn’t just about Iran or Israel—it’s about what’s coming through our own port here in Pembrokeshire. If tankers stop arriving in the Haven, the knock-on effect will be felt across the UK.”

Although the Iranian vote is not yet legally binding, Western intelligence officials warn it reflects a dangerous shift in Tehran’s posture—and that military escalation in the Gulf could trigger action at short notice.

As diplomatic efforts intensify behind the scenes, Milford Haven remains in the spotlight. The port may be thousands of miles from the Strait of Hormuz, but its future—as well as the UK’s winter gas reserves—may soon be shaped by events in the Persian Gulf.