UK's new Industrial Strategy aimed at boosting growth, investment
The 10-year, multibillion-pound strategy sets out a ten-year plan to boost investment, create skilled jobs and tackle two of the biggest barriers facing UK industry—high electricity prices and long waits for grid connections.
As the UK unveiled its bold new Industrial Strategy today, over 7,000 British businesses are expected to see their electricity bills slashed by up to a quarter from 2027. The 10-year, multibillion-pound strategy sets out a ten-year plan to boost investment, create skilled jobs and tackle two of the biggest barriers facing UK industryâ€'high electricity prices and long waits for grid connections.
British manufacturers currently pay some of the highest electricity prices in the developed world while businesses looking to expand or modernise have faced delays when it comes to connecting to the grid.
For too long these challenges have held back growth and made it harder for British firms to compete. Today's announcement marks a decisive shift — with government stepping in to support industry and unlock the UK's economic potential, according to a UK government release.
From 2027, the new British Industrial Competitiveness Scheme will reduce electricity costs by up to £40 per megawatt hour for over 7,000 electricity-intensive businesses in manufacturing sectors.
These firms, which support over 300,000 skilled jobs, will be exempt from paying levies like the Renewables Obligation, Feed-in Tariffs and the Capacity Market, helping level the playing field and make them more internationally competitive.
Eligibility and further details on the exemptions will be determined following consultation, which will be launched shortly.
The government is also increasing support for the most energy-intensive firms like steel, chemicals and glass by covering more of the electricity network charges they normally have to pay through the British Industry Supercharger.
These businesses currently get a 60-per cent discount on those charges, but from 2026, that will increase to 90 per cent. This means their electricity bills will go down, helping them stay competitive, protect jobs, and invest in the future.
To ensure businesses can grow and hire without delay, the government will also deliver a new Connections Accelerator Service to streamline grid access for major investment projects, including prioritising those that create high-quality jobs and deliver significant economic benefits.
The Supercharger and British Industrial Competitiveness Scheme will be funded through reforms to the energy system. The government is reducing costs within the system to free up funding without raising household bills or taxes and intends to also use additional funds from the strengthening of UK carbon pricing, including as a result of linking with the EU carbon market.
'We have set out an intention to link emissions trading systems, as part of our new agreement with the European Union to support British businesses. Without an agreement to do this, British industry would have to pay the EU's carbon tax," the release said.
'We intend to link our carbon pricing system with the EU's, we will ensure that money stays in the UK—which allows us to support British companies and British jobs through these schemes,' it added.
A June report from manufacturing association Make UK cautioned that without government intervention, Britain's energy-intensive sectors could face long-term decline. It called for measures such as network cost reforms, targeted relief schemes and more predictable energy pricing.
Fibre2Fashion News Desk (DS)
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