Energy Costs to be Slashed in Bid to Boost Economy

Electricity costs for thousands of businesses across the UK will be cut by scrapping green levies to help them compete with foreign rivals.

The plan, which could cut bills by up to 25%, forms a key part of Sir Keir Starmer’s 10-year industrial strategy which he hopes will address stuttering economic growth and transform the business landscape.

The Prime Minister said the plan marks a “turning point for Britain’s economy” by supporting key industries where there is potential for growth.

Manufacturers have warned “crippling” power costs are far higher for UK businesses than competitors overseas.

From 2027, a new British Industrial Competitiveness Scheme will cut costs by up to £40 per megawatt hour for over 7,000 manufacturing firms by exempting them from levies on bills including the renewables obligation, feed-in tariffs and the capacity market.

Around 500 of the most energy-intensive firms, including the steel industry, chemicals and glassmaking, will also see their network charges cut – they currently get a 60% discount through the British Industry Supercharger scheme, which will increase to 90% from 2026.

The plan also promises measures to speed up the time it can take to connect new factories and projects to the energy grid.

The Prime Minister said the plan marks a “turning point for Britain’s economy” by supporting key industries where there is potential for growth.