The Uk is aiming to cut the electricity bills of thousands of companies from 2027, in what will be the key reform in its industrial strategy for the next decade
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.
These firms, which support over 300,000 skilled jobs, will be exempt from paying levies such as 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% discount on those charges, but from 2026, that will increase to 90%. This means their electricity bills will go down, helping them stay competitive, protect jobs, and invest in the future.
This will help around 500 eligible businesses in sectors such as steel, ceramics and glass reduce their costs and protect jobs in industries that are the backbone of our economy and will be delivered at no additional cost to the taxpayer. The support for steel manufacturing is crucial as it’s a critical enabling industry for Scotland’s world leading defence and renewable energy sectors
Manufacturing will receive £4.3bn in funding over the next five years including £2.8bn for R&D and there will be a doubling of investment in clean energy by 2035, including £700mn to build clean supply chains
£380m investment has been announced into film & TV, video games, advertising & marketing and musical, visual & performing arts industries.There will be a £2bn investment into AI Action Plan and plans are also announced to secure mutual recognition for UK qualifications overseas and increase adoption of AI tools developed in the UK
No industrial strategy pleases everyone. But the government’s clear focus on clean energy, defence, and advanced manufacturing shows it’s serious about its priorities.@ said the Think Tamk IPPR reacting to the policy adding
After 15 years of chop and change, today’s industrial strategy is a real turning point for the UK economy.
Business finally has the certainty it needs to invest — especially in the green industries of the future.
