(Commonwealth_Europe) Electricity costs for thousands of UK businesses are set to fall significantly, as the government moves to scrap green levies in a bid to help firms compete more effectively with overseas rivals. The changes, which could reduce bills by as much as 25 percent, are at the heart of Sir Keir Starmer‘s newly unveiled 10-year industrial strategy aimed at reviving the country’s sluggish economic growth and reshaping the business landscape. Starmer described the plan as a major shift in direction for Britain’s economy, focusing on backing key sectors with strong growth potential. He said the long-term approach offers the certainty and stability businesses need to invest with confidence, especially in the face of global instability.
The most energy-hungry industries—like steel, chemicals, and glass—will also benefit. Around 500 of these firms currently receive a 60 percent discount on network charges under the British Industry Supercharger scheme. That discount will rise to 90 percent starting in 2026, offering more relief to sectors that have long warned of unsustainable energy prices compared to competitors in places like France and Germany.
In addition to reducing energy costs, the strategy outlines steps to speed up the time it takes for new factories and infrastructure projects to connect to the energy grid—a process that’s often plagued by delays. Energy Secretary Ed Miliband highlighted the UK’s dependence on imported gas as a key factor contributing to high energy prices. He said that ramping up domestic renewable energy sources like wind and nuclear would ultimately lower costs for both businesses and households.
The wider strategy focuses on eight key sectors where the UK already has a strong foundation and further growth potential: advanced manufacturing, clean energy, creative industries, defense, digital, financial services, life sciences, and professional and business services. Specific plans for five of these areas are expected to be unveiled on Monday, with the remaining sectors to follow later.
The announcement comes at a difficult moment for the UK economy. Recent data shows GDP shrank by 0.3 percent in April—the sharpest monthly decline in 18 months—with factors including Donald Trump’s tariffs and increases in national insurance contributions weighing on business activity. Some industries have also stated apprehension about the Employment Rights Bill, which they fear could increase operational charges. Still, many in business are vigilantly positive about the government’s new course.
Rain Newton-Smith, chief executive of the Confederation of British Industry, highlighted the importance of lowering energy prices and rearrangement planning but stressed that Britain must preserve a viable edge to continue attracting investment. Stephen Phipson, head of manufacturers’ group Make UK, highlighted three key problems facing the sector—a skills shortage, high energy costs, and lack of capital for innovation—and said the new strategy takes meaningful steps to tackle each.
Unions have also supported the change. Paul Nowak, general secretary of the TUC, said ministers were finally acting on a situation that has long muffled UK industry. He stated that British firms have fought to compete globally while paying far more for energy than their European equals, making it tougher to invest and grow. The government’s confidence in this policy marks the start of a new era for British industry—one erected on consistency, attractiveness, and long-term drive.
