Prime Minister Sir Keir Starmer has launched a £2bn industrial strategy to cut energy bills for more than 7,000 energy-intensive UK businesses. The British Industrial Competitiveness Scheme, due in 2027, will exempt eligible firms in sectors like automotive, aerospace and chemicals from various green levies. The government says the plan will reduce energy costs by up to 25% over four years.
A separate initiative – the Connections Accelerator Service – will simplify grid access for industrial projects, with powers to reserve capacity for strategic developments under the new Planning and Infrastructure Bill.
The strategy aims to revitalise regional economies and tackle long-term stagnation, focusing on eight sectors: advanced manufacturing, clean energy, creative industries, defence, digital and tech, financial services, life sciences, and professional services.
Funding will come from reforms to existing schemes like the Emissions Trading Scheme and contracts for difference. However, some experts have questioned whether the government has fully accounted for the cost. Ministers insist no new taxes or bill increases are needed.
The British Industry Supercharger scheme will be extended as part of the reforms. It currently offers significant discounts on energy levies and network charges. The network charge reduction will rise from 60% to 90%, benefiting steel, ceramics and glass firms.
To attract more investment, existing special economic zones – freeports, investment zones and enterprise zones – will be merged into new Industrial Strategy Zones, with more power handed to regional mayors.
The strategy includes £655m for skills, training and creative-sector growth.
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