Britain's industrial strategy will cut electricity bills for thousands of companies, boosting competitiveness

From Yahoo Finance: 2025-06-22 17:34:00

Britain plans to slash electricity bills for thousands of companies in a new industrial strategy. The move aims to boost competitiveness and growth by cutting costs for electricity-intensive manufacturers by up to 25% from 2027, benefiting more than 7,000 businesses.

The government is prioritizing boosting Britain’s growth. Energy costs have been a hindrance, with calls to scrap climate levies on firms. Pressure to support key industries and enhance competitiveness comes as the US and EU enact trade measures amid Trump’s tariffs.

The industrial strategy will also include sectoral plans for areas like advanced manufacturing and clean energy. Key sectors of strength for Britain include defence and financial services. Energy-intensive manufacturers will be exempt from certain levies to enhance international competitiveness.

The energy measures in the strategy will be funded through reforms to the energy system, without raising household bills or taxes. Consultation will determine the scope and eligibility of the scheme, addressing challenges faced by businesses in terms of energy costs and skills.

Make UK welcomes the industrial strategy as a significant step forward, addressing skills shortages and access to capital. The Confederation of British Industry sees it as a positive signal for growth. The strategy will also boost the British Business Bank’s capacity and invest more in skills.

The industrial strategy, the first in eight years, will allocate extra funds for skills and reduce regulatory burdens on businesses. More investment in research and development, along with streamlined planning processes, aim to support growth and competitiveness in key sectors.

Read more: Britain to cut companies’ energy bills in new industrial strategy