Public Services: From Beneficiaries to Economic Enablers 

The strategy's long-term ambition requires public institutions to deliver against three enablers: 

• Shaping demand and markets through their procurement power 
• Anchoring clusters of innovation and regional growth 
• Developing skilled workforces and data ecosystems that enable productivity 

The PSC helps organisations step into these roles with confidence. Working with NHS trusts, central government departments or place-based partnerships, we have a track record of bringing strategy, digital delivery, and transformation together to help lasting change happen fast.

Five Strategic Opportunities for Public Leaders 

1. Innovation: From Discovery and Pilot to Scale 

The strategy ranges across making equity stakes in start-ups to setting out plans to improve MHRA processes. Notably for the NHS this includes streamlining drug approvals, reducing medical trial timelines and accelerating medical technology procurement - which should help innovation cross the divide between R&D and viable service. 

We partner and work with public services clients to develop the strategies, build the capabilities, and deliver programs along the path from proof-of-concept, translational discovery and early scaling through to adoption and diffusion and dissemination at full scale to transform services. 

Want to know more about our work in this area? Read our case study on working with an AHSC to develop new models of care for specialised services, revolutionising care for 8 million patients. 

2. Place and Clusters: Lead Local Growth 

From Local Innovation Partnerships (with a further £500m investment) to innovation zones and Professional & Business Services hubs, the strategy positions city-regions and clusters as drivers of economic change. Public bodies are essential partners in this, building the alliances and collaborations that anchor clusters and networks and drive growth. 

We work with partnerships, regional leaders, and anchor institutions to align around place-based growth strategies that serve communities and drive productivity. 

One such example of our work within regions and communities is the work we did with Plymouth Local Care Partnership, developing a blueprint approach to healthcare estates that enable integration. 

3. Finance and Investment: Unlock New Growth Models 

With expanded innovation funds and public finance institutions, there's a new opportunity for public organisations to act as co-investors and scale-enablers. 

We help clients access investment and funding, build compelling business cases, and shape models that attract capital to innovation and transformation. 

For more on how we help public leaders access funding to deliver at scale, read our case study on a digital roadmap for for learning disabilities & autism, which identified a funding opportunity of at least £1m across 3 years for 7 initiatives. 

4. AI and Digital: Make Smart Adoption Real 

The government is investing £500m in nurturing "Sovereign AI capabilities" and adoption across services. This includes support for the Professional and Business Services sector - where public institutions help shape demand, set standards, and enable system-wide adoption of innovation. 

We help clients deploy AI safely and effectively - from strategy and governance to use case selection and frontline change. 

Find out more about AI and Digital in the public sector by reading our summary of the UK Government's AI Opportunities Plan, and by listening to our podcast 'AI Demystified: The New Era of Technology' - featuring Senior Partner Antonio Weiss discussing his latest book on unleashing the power of AI.

5. Data: Unlock a Strategic Asset 

New commitments include a National Data Library, smarter data-sharing legislation, and support for Smart Data initiatives. 

The PSC has been at the forefront of analysing new use cases and quantifying potential benefits, so know just how impactful it will be for customer experience and economic growth.

You can read more about how we are supporting the UK Smart Data revolution, as well as how we turn data from a compliance issue into a value-creating asset - for example, through using value-based healthcare to improve cancer care outcomes and efficiency.

Don't Overlook: Procurement, Skills, and Sustainability 

Procurement, workforce development, and sustainability are critical levers in this strategy: 

• Public sector procurement spending totalled £393 billion* in 2022–23 alone, according to the National Audit Office. When strategically aligned, this level of public sector spending represents a major opportunity to drive innovation and strengthen resilience across services. Public bodies can also be also vital players in the UK’s global competitiveness - shaping standards, exporting innovation, and attracting investment into clusters. 
• New government investment in technical education (including facilities), apprenticeships, and sector-led training initiatives will enable public services and employers to co-design workforce pathways that align with future skills needs. For public service leaders, there are opportunities to act as both a provider and beneficiary of new training routes, including access to new funding to upskill staff, and opportunities to co-design 'skills pipelines' with industry 
• The Net Zero transition is positioned as a major national growth opportunity across the sectors. Public services have a role to play in supporting clean energy clusters, and aligning infrastructure and workforce planning with low-carbon goals. 

Public leaders can use these tools to advance both economic and social impact - we help clients design procurement, workforce, and sustainability strategies that deliver. 

What Public Service Leaders Can Do Now

In the wake of the release 2025 Industrial Strategy, and, for NHS leaders, the 10-Year Health Plan, now is a time to start building momentum for change - but how do we start?

1. Review sector plans relevant to your organisation (e.g. health, defence, creative) and identify areas of intersection 
2. Position your organisation as a leader in clusters, procurement, and skills 
3. Act on AI and data opportunities - responsibly, strategically, and now 
4. Shape how strategy turns into action - lead pilot programmes, trial innovative approaches, and share success stories that can inform broader delivery 

Let's Build the Future Together 

This Industrial Strategy could be a defining moment for the UK's economy, and public services have a vital role to play in making it real. At The PSC, we're ready to help you navigate it and lead with confidence. 

We help public service leaders turn ambition into action - from innovation pilots to national impact. Ready to lead the next chapter? Let’s build it together.