UK cuts corporate energy bills with new industrial strategy
LONDON (Reuters) – Brittain will listen to calls from businesses to cut high energy costs that have stifled competitiveness and growth, aiming to cut electricity bills for thousands of companies under a new industrial strategy to be released on Monday.
Under the 10-year industrial strategy from 2025 to 2035, the government said it plans to cut electricity-intensive manufacturers’ bills by up to 25% from 2027, potentially bringing benefits to more than 7,000 companies.
The government has made the growth of anemia in the UK a major priority. But lawmakers and business leaders highlighted the empty energy costs that many companies face as obstacles to their objectives. Industry groups have put the UK in the UK that government should scrap climate taxes imposed on businesses.
The UK is under pressure to support key industries and do more to strengthen competitiveness, as the US and the European Union are trying to do the same in the trade landscape covered by President Donald Trump’s tariffs.
In addition to the strategy, five divisional plans will also be made public, including areas such as advanced manufacturing, creative industry and clean energy. The Industrial Strategy focuses on eight previously identified strength sectors, including national defense and financial services.
The government said it would exempt energy-intensive manufacturers from taxation such as the renewable energy obligation to increase international competitiveness.
“Our commitment to energy costs and fixed skills is our biggest question from businesses and the biggest challenge they faced. This government has listened,” Business Secretary Jonathan Reynolds said in a statement.
The government said energy measures will be funded through reforms to the energy system without raising household bills or taxes. The scope and eligibility of the scheme will be determined after consultation.
Make Uk said the industrial strategy was “a huge and much needed step” and addressed the lack of skills in the UK’s access to labor and capital. The British Federation of Industrial Affairs said it was a “clear and positive signal” providing “rock for growth.”
The UK’s first industrial strategy in eight years will expand the state-run UK business bank’s ability to lead investments to small and medium-sized businesses, adding £1.2 billion ($16.1 billion) per year between 2028 and 2029.
The government added that it will reduce regulatory burdens on businesses, spend more on research and development, and speed up the planning process.