The government has announced the next phase of delivery of its industrial strategy, with a focus on attracting more global talent to the UK. It’s also published a new talent pathway to provide a “single, clear ‘shop window’ for exceptional global talent” considering relocating to the UK.
Six regions in England will receive nearly £200 million annually for 30 years under a £6 billion devolution funding package to boost housebuilding, regenerate high streets, and support local economies. Ministers are also considering delaying some inaugural mayoral elections to 2028 to allow councils time to reorganise and ensure mayors can deliver effectively.
The UK government has published (14 January 2026) a new Northern Growth Strategy. Alongside launch of Northern Powerhouse Rail plans, the strategy prioritises pursuing an economic plan for the Northern Growth Corridor; improved connectivity within and between city regions; increasing effective city size, density and town regeneration: supporting business investment and innovation; investing in skills and human capital, including working with regional leaders to ensure £570 million investment in expanding local college training facilities and £902 million Local Growth Fund matches regional needs and plugs skills gaps; and enriching culture through expanding/improving the National Railway Museum in York, the Royal Armouries in Leeds, and the Liverpool museums. Further detail on the economic plan is expected this spring.
Risks and opportunities for the National Wealth Fund
The House of Commons Treasury Committee has published a report on the National Wealth Fund. The report, which is cautiously optimistic in the fund’s ability to contribute to growth and clean energy, suggests the fund will need to embrace risk-taking. It also warns that the scale of available funding could limit impact on economic growth.
In related news, the National Wealth Fund has published its new strategic plan setting out its ambition to drive more than £100 billion of investment into companies, infrastructure and supply chains. The plan includes 3 strategic ambitions: 1. Unlocking growth opportunities on the pathway to clean energy by accelerating investment into the most critical projects, technologies and industries that enable decarbonisation; 2. Providing financing and expert advice to significant projects throughout the UK via the Regional Project Accelerator; and 3. Strengthening sovereign and strategic capabilities by investing in growth opportunities underpinning the UK’s national security, and backing domestic supply chains for growth and resilience including critical minerals, defence, green steel and AI.
The Department for Energy Security and Net Zero (DESNZ) has announced a “first of its kind” Energy Resilience Strategy to help safeguard critical energy infrastructure, and to protect consumers and businesses from costly disruption.
The government has published updated terms of reference outlining the purpose, scope and responsibilities of the Interministerial Group for Net Zero, Energy and Climate Change.
Investment in electricity distribution networks
The National Energy System Operator (NESO) has published its transitional Regional Energy Strategic Plan (tRESP) to inform investment in electricity distribution networks for the 2028–33 price control period. It’s described as a first step towards improving and coordinating energy infrastructure planning at a local level, ahead of development of a full Regional Energy Strategic Plan from late 2026.
On 4 December 2025, the government published the outcome of its consultations on: the UK Emissions Trading Scheme (the inflation-based increase to Auction Reserve Prices (‘ARP’) will be implemented next year following approval of the relevant implementing legislation); and extending the UK emissions trading scheme cap beyond 2030 (phase II will operate from 2031 for 10 years with allowance banking between phases I and II). Further consultations will take place on the detail well in advance of the 2031 timeline.
The government has published the outcome of its technical consultation on the UK carbon border adjustment mechanism (CBAM). CBAM will apply from 1 January 2027, initially covering direct emissions only with indirect emissions delayed until 2029 at the earliest. Draft secondary legislation and HMRC guidance are expected before 2027.
In related news, the European Council has adopted a regulation to simplify the CBAM. It’s designed to ease administrative burdens and reduce compliance costs. Notably, there’s a new de minimis threshold exempting importers from CBAM obligations for up to 50 tons annually.
BP has withdrawn plans to develop the H2 Teesside hydrogen and carbon capture project, paving the way for AI/data centre-focused redevelopment plans.
Industry Today has published (February 2026) various industry insights and projections. Highlights include:
A Competition and Markets Authority (CMA) interim report, published as part of its ongoing market study into the civil engineering sector for public road and railway infrastructure, highlights persistent issues hindering growth and productivity. The CMA has provisionally identified significant opportunities to improve how projects are scoped, planned, procured and regulated.
The government has announced £7.3bn in capital funding for local highway maintenance over a four‑year period from 2026–27 to 2029–30. The funding will be distributed regionally and tied to new transparency requirements.
Support for sustainable transport infrastructure
The Autumn 2025 budget confirmed that the government will bring in a new pay-per-mile Electric Vehicle Excise Duty for electric and plug-in hybrid cars, with effect from April 2028. There will also be £100m to support councils in increasing the amount of electric vehicle charging points; £100m for EV charging infrastructure; and the government will consult on a new permitted development right for EV charging.
The government has introduced the Railways Bill to establish Great British Railways (GBR) as a new state-owned company responsible for running and coordinating the whole network, including infrastructure and passenger services.
The High Court has dismissed Oceana UK’s attempt to overturn the issuing of 28 oil and gas exploration licences. However, the court noted that adverse effects on areas of conservation must be assessed at every relevant stage and the assessment is to be updated with increasing specificity in subsequent stages of the procedure. If the schemes progress towards oil and gas production, more stringent assessments on their potential environmental impacts will need to take place.
The government has published its much-anticipated North Sea Future Plan.
The Autumn 2025 budget confirmed that the temporary Energy Profits Levy (EPL) will be replaced by a new permanent Oil and Gas Profits Mechanism. The mechanism will be a “revenue-based mechanism which only operates in times of high prices and will replace the EPL when it ends in 2030, or earlier if the EPL price floor triggers”.
Rising climate litigation: Key trends and legal developments
We’ve reported previously on the so-called ‘Swiss grannies’ case, in which the European Court of Human Rights found that Switzerland had taken inadequate steps to combat climate change and, in doing so, had breached the human rights of an association of elderly Swiss women concerned by the impact of climate change. We anticipated that the ruling could prompt other innovative and strategic claims, challenging the failure of states to achieve, or set, adequate climate targets.
The Good Law Project has now commenced legal action against the UK government arguing that, following the ‘Swiss grannies’ judgment, the government’s climate plans fall short of an enforceable climate duty. Strategic/green litigation is on the rise. The practical advice set out in our earlier briefing is perhaps even more important today. Businesses may also want to check out our more recent advice in relation to the Corporate Sustainability Due Diligence Directive and climate transition planning.
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