Keir Starmer is expected to launch the government’s 10-year industrial strategy plan on Monday – with help for thousands of firms struggling with electricity bills
Crippling electric bills will be slashed for thousands of firms, the government has announced.
As part of a 10-year industrial strategy being published on Monday electric-intensive businesses could see costs cut by up to 25% from 2027. The Department for Business and Trade said the measures will help more than 7,000 companies and manufacturers paying sky-high electricity prices.
They said the British Industrial Competitiveness Scheme will reduce costs by up to £40 per megawatt hour for sectors including chemicals, automotive, and aerospace. They will be exempt from paying certain levies with details to be set out after a consultation.
Firms in energy-intensive sectors such as steel and glass already receive a discount on bills for their electric supply through the British Industry Supercharger scheme. But they will also see the discount hiked by 30%, the government added.
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.”
Business Secretary Jonathan Reynolds added: “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.”
General Secretary of the Trades Union Congress (TUC) Paul Nowak welcomed the support. He said: “We welcome ministers taking action to reduce sky-high energy costs for manufacturers – something unions have been calling for as a matter of urgency.
“For too long, UK industry has been hamstrung by energy prices far above those in France and Germany. It’s made it harder to compete, invest, and grow. If we’re serious about rebuilding British manufacturing, leveling the playing field is essential. We’ll need to see the detail – but lower energy costs are a vital step towards giving our manufacturers the fair shot they deserve.”
The decade-long plan to be published on Monday will also include a £275million boost to skills training for one in seven young people currently out of work and education.
It is expected to focus on training people to work in defence, engineering, digital and construction roles, in an attempt to boost the economy. Britain’s last industrial strategy – a four-year plan – was published by former PM Theresa May back in 2017.
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