More than 7,000 energy-intensive UK businesses will see their electricity bills cut by up to 25% starting in 2027, under the government’s new 10-year Industrial Strategy.
This aims to boost investment, create 1.1 million skilled jobs, and make Britain a top destination for business.
Key points of the strategy include:
- Cheaper electricity for manufacturers in sectors like automotive, aerospace, steel, and chemicals, making them more globally competitive.
- Expansion of the British Industry Supercharger, increasing discounts on electricity network charges from 60% to 90% for the most energy-intensive businesses.
- A new grid connection service launching in 2025 to speed up energy access for major investment projects.
The strategy addresses long-standing challenges like high energy prices and slow infrastructure access. It will be funded through reforms, including savings from the energy system and revenue from UK carbon pricing, without raising taxes or household bills.
The government also announced:
- £25.6 billion in support for SMEs and startups, especially in high-growth sectors.
- £1.2 billion annually by 2028–29 for skills training, especially in engineering, tech, and defence.
- Boosting R&D funding to £22.6 billion per year by 2030.
- Reforms to planning and regulation to make it easier to grow and invest in the UK.
- Support for eight key sectors: Advanced Manufacturing, Clean Energy, Creative Industries, Defence, Digital & Tech, Financial Services, Life Sciences, and Professional Services.
Leaders from major UK industries welcomed the plan, calling it a much-needed step towards a more competitive, innovative, and sustainable British economy.
Prime Minister Keir Starmer said:
“This Industrial Strategy marks a turning point for Britain’s economy and a clear break from the short-termism and sticking plasters of the past.
In an era of global economic instability, it delivers the long term certainty and direction British businesses need to invest, innovate and create good jobs that put more money in people’s pockets as part of the plan for change.
This is how we power Britain’s future - by backing the sectors where we lead, removing the barriers that hold us back, and setting out a clear path to build a stronger economy that works for working people. Our message is clear - Britain is back and open for business”.
Chancellor of the Exchequer Rachel Reeves said:
“The UK has some of the most innovative businesses in the world and our Plan for Change has provided them with the stability they need to grow and for more to be created.
Today’s Industrial Strategy builds on that progress with a ten-year plan to slash barriers to investment. It’ll see billions of pounds for investment and cutting-edge tech, ease energy costs, and upskill the nation. It will ensure the industries that make Britain great can thrive. It will boost our economy and create jobs that put more money in people’s pockets”.
Business and Trade Secretary Jonathan Reynolds said:
“We’ve said from day one Britain is back in business under this government, and the £100 billion of investment we’ve secured in the past year shows our Plan for Change is already delivering for working people.
Our Modern Industrial Strategy will ensure the UK is the best country to invest and do business, delivering economic growth that puts more money in people’s pockets and pays for our NHS, schools and military.
Not only does this Strategy prioritise investment to attract billions for new business sites, cutting-edge research, and better transport links, it will also make our industrial electricity prices more competitive.
Tackling energy costs and fixing skills has been the single biggest ask of us from businesses and the greatest challenge they’ve faced – this government has listened, and now we’re taking the bold action needed. Government and business working hand in hand to make working people better of is what this Government promised and what we will deliver”.
Energy Secretary Ed Miliband said:
“For too long high electricity costs have held back British businesses, as a result of our reliance on gas sold on volatile international markets.
As part of our modern industrial strategy we’re unlocking the potential of British industry by slashing industrial electricity prices in key sectors.
We’re also doubling down on our clean power strengths with increased investment in growth industries from offshore wind to nuclear. This will deliver on our clean power mission and Plan for Change to bring down bills for households and businesses for good”. Photo by UKinUSA from Washington, D.C., USA, Wikimedia commons.