The UK Government’s Industrial Strategy and National Infrastructure Pipeline together form the central framework for accelerating growth, improving productivity and delivering on the country’s decarbonisation goals. While these policies articulate a clear strategic direction, research undertaken by Oxford Economics in collaboration with BNP Paribas focuses on a critical question for markets: how do these ambitions translate into financing needs, delivery risk and investable opportunity?
Based on an assessment of the Industrial Strategy’s priority sectors, pipeline visibility and associated delivery mechanisms, the analysis estimates that around GBP345 billion of private capital will be required over the next decade to supplement public funding and ensure implementation at scale.
From strategy to delivery
The Industrial Strategy sets out a targeted approach centred on eight priority sectors, supported by long-term infrastructure planning through the National Infrastructure Pipeline. Together, these frameworks aim to provide greater predictability for investors by clarifying sectoral priorities, sequencing investment and signalling where public capital will be used to crowd in private finance.
At the core of the strategy are eight priority sectors where the UK is seeking to reinforce comparative advantage and accelerate private investment. Our analysis highlights distinct financing dynamics across the IS-8:
- Advanced Manufacturing
- Defence
- Clean Energy Industries
- Life Sciences
- Digital and Technology (including frontier AI, semiconductors and connectivity)
- Creative Industries
- Financial Services
- Professional Services
For private capital and institutional investors, the opportunity lies in the role private capital can play in bridging financing gaps, particularly in infrastructure sectors where revenue certainty already supports private investment. If the UK aims to deliver its 10-year strategy in full, additional private financing will be essential-not only to fund currently unfunded elements, but also to ensure that early-stage projects reach procurement and construction. For banks, the pipeline offers an opportunity to leverage financing expertise and global investor access to support the UK economy in closing the funding gap.
Policy mechanisms supporting investment
The UK benefits from a mature institutional framework designed to reduce risk and mobilise private capital. The research highlights the role of several mechanisms expected to be central to delivery:
- UK Export Finance Up to GBP80 billion of capacity supporting export-linked investment and overseas expansion.
- National Wealth Fund GBP27.8 billion capital base with a mandate to crowd in private investment across strategic sectors.
- Contracts for Difference (CfD) A proven framework providing long-term revenue certainty for clean energy and transition assets.
With international appetite for UK and European infrastructure assets continuing to grow, and the delivery window narrowing, the next 12 to 18 months are likely to be a critical period for securing financing and anchoring investor participation to ensure the UK can meet its targets.
❝ As one of Europe’s largest banks, BNP Paribas sits at the interface between investors and businesses, and we see significant optimism in the UK’s future. The growth agenda means rising demand for bank lending, private credit, growth equity and structured finance, particularly to fund AI adoption, digital infrastructure, energy autonomy and international expansion across the sectors and countries. ❞
The report also explores how these efforts might be augmented to achieve the level of investment required.
BNP Paribas in the UK
BNP Paribas has been in the UK for more than 150 years and now has more than 8,500 employees across 7 companies, – Arval, Asset Management, Commercial Finance, Corporate & Institutional Banking, Leasing Solutions, Personal Finance and Real Estate – with a presence in 15 cities and more than 8,500 employees from over 50 countries. The bank has extended over £100 billion of debt and equity to UK companies
The Bank supports British businesses and institutions as well as the many global enterprises with large operations based there and has already provided over GBP100 billion in debt and equity financing to UK headquartered companies.
