UK ministers set 2026 mandate for ISAC in letter
On 2 December 2025, the Chancellor Rachel Reeves and the Business and Trade Secretary Peter Kyle wrote to the Industrial Strategy Advisory Council (ISAC). Their letter, published on GOV.UK on 14 January 2026, commissions ISAC’s work for the next year and sets out what ministers want the council to prioritise. It’s the formal brief that guides an expert committee’s focus for the year ahead. (assets.publishing.service.gov.uk)
So, what is ISAC? It’s an independent expert committee that advises the government on the UK’s modern Industrial Strategy and monitors progress. ISAC is sponsored by the Department for Business and Trade and HM Treasury, and the current body was launched on 17 December 2024, following an earlier Industrial Strategy Council that closed in 2021. (gov.uk)
Who sits on it matters. The GOV.UK membership list shows Dame Clare Barclay of Microsoft as chair and Professor Dame Nancy Rothwell as deputy. Members include business leaders such as Greg Jackson (Octopus Energy), trade union voices like Kate Bell (TUC) and academics including Professor Henry Overman. Ex officio members Chris Grigg (National Wealth Fund) and Phil Smith (Skills England) help connect ISAC’s advice to delivery bodies. (gov.uk)
The first priority in the letter is skills. Ministers ask ISAC to help shape the new Jobs Plans (previously called workforce strategies) for each sector, working through the Labour Market Evidence Group alongside Skills England, the Migration Advisory Committee and others. ISAC is asked for two discussion papers: one mapping current and future skills needs across places; another, due by Summer 2026, setting out options to raise employer investment in training. (assets.publishing.service.gov.uk)
The second priority is monitoring and evaluation. ISAC is tasked with advising on data, metrics and an ‘impact pathway’ so government can see cause and effect more clearly. The council is expected to supply independent intelligence on sector developments, help improve sector data-especially in fast‑emerging areas-and keep departments focused on growth‑enhancing delivery. (assets.publishing.service.gov.uk)
The third priority is market dynamism. Ministers want insight on barriers that hold back new business models, starting with Clean Energy and Defence, with initial advice due by April 2026. There’s also a place dimension: ISAC is asked to explore how different parts of the UK can help high‑growth firms scale and how workers can move more easily into better‑paid jobs in these sectors. (assets.publishing.service.gov.uk)
A quick refresher on scope helps. The Industrial Strategy focuses on eight ‘IS‑8’ sectors defined by the Department for Business and Trade: Advanced Manufacturing; Clean Energy Industries; Creative Industries; Defence; Digital and Technologies; Financial Services; Life Sciences; and Professional and Business Services. (gov.uk)
How a commission works, in plain English: ministers set the questions and timelines; the council gathers evidence, talks to industry, unions and local leaders, and then advises. Government decides what to adopt. In this case, the letter also asks ISAC to publish a public report within one year of 2 December 2025, summarising its projects, engagement and future milestones, so Parliament and the public can see progress. (assets.publishing.service.gov.uk)
Why this matters to you. If you teach or study economics, business or politics, this is policy‑making in real time: evidence, timelines and accountability. If you work in one of the IS‑8 sectors, expect Jobs Plans and a bigger push on employer training to affect courses, apprenticeships and hiring. ISAC’s September 2025 minutes already show members discussing reskilling, employer investment and the data needed to judge what works. (gov.uk)
What to look for next. Watch for ISAC’s advice on market dynamism by April 2026, recommendations on boosting employer investment in skills by Summer 2026, and a public report by 2 December 2026. Expect continued engagement with businesses and local leaders across the UK, plus contact with peer bodies in Japan and France as the council shares lessons internationally. (assets.publishing.service.gov.uk)