Government acts on top business concern and cuts electricity bills for thousands of manufacturers by up to 25%
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Business Secretary sets out vision for optimism and economic growth
at keynote speech to CBI's annual conference. Government powers
ahead with slashing electricity costs for over 7,000 British
businesses by up to 25%. British Business Bank to improve access to
finance and increase its pace of investment with focus on
Industrial Strategy sectors. Over 7,000 British businesses will see
their electricity bills slashed by up to 25 percent, alongside
increased support on...Request free
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Over 7,000 British businesses will see their electricity bills slashed by up to 25 percent, alongside increased support on access to finance for high potential firms, as Government takes bold action to tackle the biggest issues facing British businesses. Business and Trade Secretary Peter Kyle will set out his big and bold offer of enhanced support in a keynote speech to a room of bosses from some of the UK's top firms at the CBI Conference in London. He will announce the launch of an 8-week consultation for the British Industrial Competitiveness Scheme (BICS) that will determine eligibility and deliver one of the key promises in the government's modern Industrial Strategy. The scheme will cut energy prices for thousands of businesses, from April 2027, in high growth industries like automotive and aerospace and foundational sectors in their supply chains, like chemicals. British industrial electricity prices are currently some of the highest in the G7, making it harder for British firms to compete on the global stage. He will also address another major concern among bosses who struggle to secure access to finance in order to grow and scale up their business. The Business Secretary will today back a new five-year plan for the Government-owned British Business Bank, ensuring it can invest larger amounts in successful domestic scale-ups, who currently have to look overseas for finance. This will increase the Bank's pace of investment by two thirds, with a £4 billion boost for the most promising businesses in Industrial Strategy sectors to scale up and stay here. Over five years, the Bank's total activities are projected to support 180,000 UK businesses, 370,000 new jobs, and add £68 billion of gross value added to the UK. economy. Business and Trade Secretary Peter Kyle said: “In recent years, our most promising innovators and industries have been hamstrung by some of the highest electricity prices in the G7 and poor access to finance. That's been a drag anchor on growth. A drag anchor on innovation. "I have listened to business on both these issues and today we're taking action. This is just the start, and in the months ahead I will be going further to address business concerns, reverse our industrial decline and make the UK the best place to start and scale a business." High energy prices have consistently been raised as one of the top issues for businesses. 65% of respondents in Make UK and PWC's 2025 energy survey said high energy costs reduce their ability to compete and that it is a ‘dominant concern for manufacturers', whilst 64% of businesses in the latest business confidence survey from the Adam Smith Institute said high energy costs are a ‘major concern'. Now, the support provided through BICS will help level the playing field for thousands of companies, delivering on the central aim of the modern Industrial Strategy to back Britain's leading sectors to attract new investment and deliver economic growth across all regions of the UK as part of the Plan for Change. The scheme will support hundreds of thousands of skilled jobs across the country, reducing eligible companies' bills by around £35-£40 per megawatt hour, or up to 25 percent. By bearing down on costs across the energy system, we expect to deliver BICS and ensure that the scheme is delivered in line with our wider priorities to deliver affordable power for businesses and households. For example, the proposals in DESNZ's recent consultations on RO/FiT indexation, if implemented, could contribute to that goal. BICS follows the uplift to the discount on electricity costs provided through the British Industry Supercharger scheme announced just last month, which will launch in 2026 and increase the discount on electricity network charges faced by businesses in sectors like steel, cement and glass from 60 to 90 percent. Louise Hellem, CBI Chief Economist, said: “Businesses have long warned that soaring energy prices are not just a cost burden, they're an investment barrier. This consultation marks another welcome step forward in tackling a significant drag on economic growth. “Supporting firms to electrify is also critical to accelerating the energy transition and safeguarding the UK's industrial competitiveness. “Government must now move quickly, in partnership with industry and energy suppliers, to set clear eligibility rules, delivery mechanisms and funding streams to close the industrial electricity price gap between the UK and its G7 peers.” Kevin Craven, CEO of ADS said: “We welcome the Government's commitment to tackling high industrial energy costs and improving access to finance, recognising the importance of these issues particularly for our aerospace sector. ADS called for action in its Autumn Budget submission and today's measures are a positive step forward. “There is no doubt that the business environment remains challenging and we look forward to working with Government to shape these interventions and address wider cost pressures. Continuing this momentum into the new year will be vital for ensuring UK industry stays competitive.” Ben Martin, Policy Manager, British Chambers of Commerce said: “This scheme is a positive step forward and will provide vital support to businesses in energy intensive industries. This consultation, to determine eligibility, is a key part of the process and will provide certainty for firms in understanding future costs for the coming years.” ENDS Notes to editors
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