The UK Government launched a new Industrial Strategy, promising to cut electricity costs for over 7,000 businesses by up to 25% from 2027 and unlock billions in investment.
The government today unveiled its comprehensive Industrial Strategy, a ten-year blueprint designed to bolster investment, foster skilled job creation, and solidify the UK's position as a leading global business destination. The strategy directly addresses long-standing challenges of high electricity prices and lengthy grid connection waits, which have impeded growth and competitiveness for UK firms.
A cornerstone of the new strategy is the British Industrial Competitiveness Scheme, set to commence in 2027. This scheme will reduce electricity costs by up to 拢40 per megawatt hour for over 7,000 electricity-intensive manufacturers in key sectors such as automotive, aerospace, and chemicals.
These businesses, which collectively support over 300,000 skilled jobs, will benefit from exemptions from various levies, including the Renewables Obligation, Feed-in Tariffs, and the Capacity Market. This measure is designed to level the playing field for British companies, bringing their energy costs more in line with major European economies and enhancing their international competitiveness. Further details on eligibility will be released following an upcoming consultation.
In addition to the Competitiveness Scheme, the government is intensifying support for the most energy-intensive firms, including those in steel, chemicals, and glass. Through an enhanced British Industry Supercharger, these approximately 500 businesses will see their electricity network charge discounts increase from the current 60% to 90% from 2026. This significant reduction will directly lower their electricity bills.
Recognizing the critical need for efficient infrastructure, the strategy also introduces a new Connections Accelerator Service. Expected to be operational by the end of 2025, this service will streamline grid access for major investment projects, with a particular focus on those that promise high-quality job creation and substantial economic benefits. The government will collaborate with the energy sector, local authorities, and devolved governments to design this service. Furthermore, new powers within the pending Planning and Infrastructure Bill could allow the government to reserve grid capacity for strategically important projects, aiming to cut waiting times and unlock growth in key sectors.
The Industrial Strategy is focused on eight high-growth sectors where the UK demonstrates significant strength: Advanced Manufacturing, Clean Energy Industries, Creative Industries, Defence, Digital and Technologies, Financial Services, Life Sciences, and Professional and Business Services. Each sector will benefit from a bespoke ten-year plan to attract investment, enable growth, and create high-quality, well-paid jobs, underpinning the government's broader "Plan for Change."
