Latest news with #BritishIndustrialCompetitivenessScheme
Scotsman
4 days ago
- Business
- Scotsman
Industrial strategy is turning point for Scotland's economy
Electricity costs for energy-intensive firms will be cut by up to 25% (Picture: Gareth Fuller/PA Wire) This week the Labour Government launched the ten-year Industrial Strategy, a new, whole-of-government approach to the economy which holds brilliant opportunities for Scotland. Sign up to our daily newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to Edinburgh News, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Advanced manufacturing, clean energy, the creative industries, defence, digital and technologies, financial services, life sciences and professional and business services; Scotland excels at them all. But we can do more to help these industries thrive. That's exactly the aim of Labour's new industrial strategy, which will back Scotland's strengths and has ambitious plans for these eight high-growth sectors. As a ten-year plan, it's a turning point for Scotland's economy, marking a clear departure from the short-termism of previous governments north and south of the border. Advertisement Hide Ad Advertisement Hide Ad A key part of the strategy is the new British Industrial Competitiveness Scheme which, from 2027, will slash industrial electricity costs for energy-intensive firms by up to 25 per cent, benefitting hundreds of businesses in Scotland and up to 7000 across the whole UK. Tackling energy costs has been the single biggest ask of us from businesses; we've listened, and now we're taking action. The new strategy also means billions in innovation funding and business finance, new initiatives to improve skills, a new taskforce to attract talent from across the world, planning reforms, a landmark commitment to £725 billion on infrastructure over ten years, and improvements to digital infrastructure, including £41 million to improve the speed and availability of Wi-Fi on mainline trains. This will ensure the industries that make Scotland great can thrive, boosting our economy and creating well-paid jobs, putting more money in people's pockets and delivering on this government's Plan for Change. While the strategy will lift living standards in all parts of the country, Scotland in particular stands to derive unique advantages. Scottish clean energy industries will benefit from development funding of around £200m to advance the Acorn Carbon Capture and Storage project, capitalising on expertise in the oil and gas sector in the North East and guaranteeing the future of this vital pillar of Scotland's economy. Meanwhile, Scotland's universities, which are driving innovation across quantum, clean energy and life sciences, will get to take full advantage of the recently announced £750m investment in the UK's largest supercomputer at the University of Edinburgh, which sets a marker for our ambition for further growth in digital and technologies. Scotland's advanced manufacturing also stands to benefit. The sector, which employs 195,000 people across Scotland, will receive investment of £4.3bn, including up to £2.8bn in research and development funding over the next five years, supporting this vital part of Scotland's industrial past and guaranteeing a bright future for it. It's an increasingly tumultuous time for the world economy, and this new strategy delivers the long-term certainty, stability and direction Scottish businesses need to invest, innovate and create good jobs that put more money in people's pockets. This is the way to deliver improved living standards right across the country. Scotland has a proud industrial heritage, and with this new strategy we can extend that long into the future. I launched the Industrial Strategy in Scotland this week at the old Cockenzie power station site in East Lothian. The potential there is huge. The challenge is now to grasp all these wonderful opportunities and deliver thousands of new jobs in Scotland. Ian Murray is MP for Edinburgh South and Secretary of State for Scotland
New Straits Times
6 days ago
- Business
- New Straits Times
Britain unveils 10-year industrial strategy to cut energy costs, support key sectors
LONDON: The British government on Monday unveiled a comprehensive 10-year Industrial Strategy aimed at addressing long-standing structural challenges in British industry, including high energy costs and prolonged delays in electricity grid connections, Xinhua reported. The plan includes targeted support for eight high-growth sectors such as advanced manufacturing, clean energy, and digital technology. A major feature of the strategy is the British Industrial Competitiveness Scheme, which aims to reduce electricity bills by up to 25 per cent for more than 7,000 energy-intensive businesses — including those in the steel and chemicals sectors — starting in 2027. The savings will be achieved by removing several existing charges on electricity bills that currently fund renewable energy generation and backup supply systems. Complementing this initiative, the British Industry Supercharger programme will expand support for approximately 500 companies in sectors such as ceramics, glass, and aluminium. These companies currently receive a 60 per cent discount on electricity network charges, which will rise to 90 per cent from 2026 — a move expected to lower operating costs and enhance global competitiveness. To address persistent delays in connecting to the electricity grid, the government plans to launch a Connections Accelerator Service by the end of 2025. The service will coordinate with energy providers, devolved governments and local authorities to expedite grid access for major investment projects. British Prime Minister Keir Starmer described the strategy as "a turning point for Britain's economy and a clear break from the short-termism and sticking plasters of the past". Chancellor of the Exchequer Rachel Reeves emphasised the plan's investment-friendly approach, saying it would ease business energy costs, unlock funding for advanced technologies, and support job creation. "It will boost our economy and create jobs that put more money in people's pockets," she said. The government stressed that the reforms would not result in higher taxes or household energy bills. Instead, they will be funded through adjustments to the national energy system and increased revenues from carbon pricing. Beyond energy reforms, the strategy includes sector-specific support for eight high-potential industries: advanced manufacturing, clean energy, creative industries, defence, digital and technologies, financial services, life sciences, and professional and business services. Each sector will receive tailored policy frameworks and funding packages over the next decade. While the announcement has been broadly welcomed by industry representatives, some experts and business leaders expressed concerns. Critics noted that although the electricity price reforms could improve competitiveness, they are unlikely to fully close the gap with lower industrial power costs in countries such as France and Germany. Britain's electricity prices remain closely tied to wholesale gas markets, which still account for a larger share of the country's energy mix compared to many European nations. Others questioned the government's ability to sustain long-term commitments, citing past inconsistencies in industrial policy. Several industry voices also urged faster implementation amid intensifying global competition for green investment. The government said detailed action plans for each sector will be published in phases over the coming months.
The Star
6 days ago
- Business
- The Star
Britain unveils 10-year industrial strategy to cut energy costs, support key sectors
LONDON, June 23 (Xinhua) -- The British government on Monday unveiled a comprehensive 10-year Industrial Strategy designed to tackle long-standing structural challenges facing British industry, including high energy costs and lengthy delays in electricity grid connections. The plan also outlines targeted support for eight high-growth sectors, including advanced manufacturing, clean energy, and digital technology. A major component of the strategy is the British Industrial Competitiveness Scheme, which aims to reduce electricity bills by up to 25 percent for more than 7,000 energy-intensive businesses - including those in the steel and chemicals sectors - starting in 2027. These savings will come from removing several existing charges on electricity bills that currently fund renewable energy generation and backup supply systems. Complementing this initiative, the British Industry Supercharger program will expand support for approximately 500 companies in sectors such as ceramics, glass, and aluminum. These firms currently receive a 60 percent discount on electricity network charges, which will increase to 90 percent from 2026, a move expected to lower operating costs and enhance global competitiveness. To address persistent delays in connecting to the electricity grid, the government plans to launch a Connections Accelerator Service by the end of 2025. The service will work in coordination with energy providers, devolved governments, and local authorities to expedite grid access for major investment projects. British Prime Minister Keir Starmer hailed the strategy as "a turning point for Britain's economy and a clear break from the short-termism and sticking plasters of the past." Chancellor of the Exchequer Rachel Reeves emphasized the plan's investment-friendly approach, noting that it would ease business energy costs, unlock funding for advanced technologies, and support job creation. "It will boost our economy and create jobs that put more money in people's pockets," she said. The government stressed that the reforms would not lead to higher taxes or household energy bills. Instead, they will be financed through adjustments to the national energy system and increased revenues from carbon pricing. Beyond energy reforms, the strategy includes sector-specific support for eight high-potential industries: advanced manufacturing, clean energy, creative industries, defense, digital and technologies, financial services, life sciences, and professional and business services. Each sector will receive tailored policy frameworks and funding packages over the next decade. While industry representatives have broadly welcomed the announcement, some experts and business leaders have voiced reservations. Critics argue that although the electricity price reforms may enhance competitiveness, they are unlikely to fully close the gap with lower industrial power costs in countries like France and Germany. Britain's electricity prices remain closely linked to wholesale gas markets, which still account for a larger share of Britain's energy mix than in many European countries. Others questioned the government's ability to follow through on its long-term commitments, citing past inconsistencies in industrial policy. Several industry voices also called for faster implementation amid intensifying global competition for green investment. The government said detailed action plans for each sector will be published in phases over the coming months.
Yahoo
6 days ago
- Business
- Yahoo
Starmer picks his winners in bid to revive British industry
Sir Keir Starmer has vowed to make Britain 'the best place to do business' with a new industrial strategy focused on eight key areas of the economy. At 160 pages, the lengthy document will form the centrepiece of Labour's economic policy as ministers try to navigate the impact of geopolitical crises and Donald Trump's tariffs. It is designed to provide a clear blueprint for the Government's priorities over the next 10 years, unlocking jobs and investment. But critics have argued it will do little to help businesses battling rising prices and higher taxes. Here we look at some of the most interesting policies in the strategy published on Monday. The Industrial Strategy focuses on eight areas of the economy that it says have 'the highest potential' over the next decade. They are: Advanced manufacturing (including cars) The creative industries Life sciences Clean energy Defence Digital and technologies Professional and business services Financial services Britain's 'foundational' industries – steel, construction, chemicals, ports and so forth – are also included. The eight sectors are those the Government believes will be most important to the country's future economic success. But as with any attempt to choose favourites, those left out are not happy. 'Ignoring 70pc of the economy is at odds with the Government's ambition to create jobs and help people into work,' Kate Nicholls, chief executive of UKHospitality, warned. The biggest new policy to come out of the strategy is a scheme to help manufacturers with soaring energy bills. British companies have been paying the highest industrial electricity prices in the developed world, according to official data. Now they will benefit from a new 'British Industrial Competitiveness Scheme', which will offer relief to 'electricity-intensive' firms by exempting them from paying net zero levies on their power bills. Support for energy-intensive manufacturers such as steel makers is also being expanded. However, the British Industrial Competitiveness Scheme won't come into effect until 2027 and key details, such as how it will be funded and which sectors will benefit, remain unclear. The UK Steel lobby group has also warned there will still be a disparity between European and UK power prices – even after the extra help is accounted for. 'This is an important milestone, but we are not out of the trenches yet,' said Gareth Stace, UK Steel's director. With Britain re-arming in response to rising global tensions, ministers have talked up the defence industry's ability to spread prosperity throughout the regions. For example, major programmes to build nuclear-powered submarines in Barrow-in-Furness, Cumbria; new types of frigates in Scotland; and a next-generation fighter jet in Warton, Lancashire, are creating thousands of jobs. The strategy sets out policies to increase the involvement of small businesses, boost defence exports, reduce the time it takes to issue contracts and buy British where possible. Some of this aims to address the long-standing concern that smaller companies lose out amid the Ministry of Defence's (MoD) labyrinthian approach to procurement. The strategy says the MoD will now be required to issue contracts much more quickly, and to funnel 10pc of its equipment budget into cutting-edge technologies such as drones, lasers and artificial intelligence. At the same time, a new defence exports office will be set up to roll the pitch for British equipment abroad, and institutions such as the National Wealth Fund have been ordered to invest more in defence companies. Perhaps the biggest beneficiary from the Industrial Strategy will be Ed Miliband's clean power plan. The Industrial Strategy describes the transition to net zero as 'the economic opportunity of the century', with a focus on wind farms, nuclear, fusion power, carbon capture and storage, hydrogen and heat pumps. However, critics have warned that tens of thousands of jobs promised from the green energy revolution will not materialise unless the Government succeeds in attracting investment in domestic factories for technologies such as wind turbines. Ministers have pledged to invest in these supply chains through Great British Energy, the new state-owned energy company. However, researchers at Robert Gordon University, in Aberdeen, recently warned that time was running out ahead of Mr Miliband's 2030 clean power target. The Government believes British firms are not using enough robots and this is hurting productivity. It says domestic firms have a 'poor record' on this front, with many small firms having not adopted artificial intelligence (AI) software or cloud computing so far. To tackle the problem, a network of 'robotics adoption hubs' will be set up across the UK to improve uptake. These will be backed by £40m of funding. One pledge that travellers across Britain will welcome is a promised upgrade to the troublesome WiFi currently provided on the creaking rail network. In a bid to help people work on business while on the move, the Government says it will spend £41m to 'introduce low-earth-orbit satellite connectivity on all mainline trains'. It is not clear what form this could take exactly but the statement suggests that a service such as Elon Musk's Starlink satellite broadband could be deployed to fix train network problems. The Government says it will also improve connectivity between cities with billions of pounds of transport upgrades, through major schemes such as HS2 and East West Rail. However, not everyone is happy with Monday's announcement. The loudest complaint came from Britain's struggling hospitality industry, which is facing surging taxes and wage bills. 'This is not an industrial strategy that will deliver growth equally across the UK,' said Ms Nicholls, of UKHospitality. 'In fact, by ignoring 70pc of the economy it is at odds with the Government's ambition to create jobs and help people into work. 'We were desperate to see a plan for hospitality and the high street, which together employ over 7m people. We were disappointed.' Support for Britain's retail industry – the country's biggest private sector employer – was also lacking, with companies in the sector worried they could be asked to pay for the electricity bill discounts handed out to other sectors. Tom Ironside, of the British Retail Consortium, said: 'It is essential that the costs incurred by these reductions are not redistributed to other industries, including retail and its supply chains, as has been the case with some initiatives in the past.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fibre2Fashion
6 days ago
- Business
- Fibre2Fashion
UK's new Industrial Strategy aimed at boosting growth, investment
As the UK government 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 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)
