Britain to cut companies energy bills in new industrial strategy
LONDON, June 22 (Reuters) - Britain will aim to cut the electricity bills of thousands of companies under a new industrial strategy to be published on Monday, heeding calls from business to lower high energy costs that they say have damaged competitiveness and hindered growth.
Under an industrial strategy for the decade 2025-2035, the government plans to cut the bills of electricity-intensive manufacturers by up to 25% from 2027, a move it said could benefit more than 7,000 businesses.
The government has made boosting Britain's anaemic growth a key priority. But lawmakers and business leaders had highlighted the sky-high energy costs many companies face as a hindrance to that aim, with industry body Make UK saying government should scrap climate levies imposed on firms.
Britain has been under pressure to do more to support its key industries and bolster competitiveness as the United States and the European Union also seek to do likewise, in a trade landscape upended by U.S. President Donald Trump's tariffs.
Alongside the strategy, five sectoral plans for areas such as advanced manufacturing, creative industries and clean energy are also set to be published. The Industrial Strategy focuses on eight previously identified sectors of strength for Britain, which also include defence and financial services.
The government said it would exempt energy-intensive manufacturers from levies like the Renewables Obligation to boost their international competitiveness.
"Tackling energy costs and fixing skills has been the single biggest ask of us from businesses and the greatest challenge they have faced – this government has listened," Business Secretary Jonathan Reynolds said in a statement.
The government said the energy measures would be funded through reforms to the energy system, without raising household bills or taxes. The scope and eligibility for the scheme will be finalised after a consultation.
Make UK said the industrial strategy was a "giant and much needed step forward" that also tackled a skills shortage in Britain's workforce and access to capital. The Confederation of British Industry said it was an "unambiguous, positive signal" that would provide a "bedrock for growth"
The industrial strategy, Britain's first in eight years, will expand the state-owned British Business Bank's capacity to channel investment into smaller companies, and provide an extra 1.2 billion pounds ($1.61 billion) a year on skills by 2028-29.
The government added it would cut regulatory burdens on businesses, spend more on research and development and speed up planning processes.
($1 = 0.7435 pounds) (Reporting by Alistair Smout; editing by Clelia Oziel)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
9 minutes ago
- Business Standard
Stock Market LIVE: GIFT Nifty down; Asia falls on US entry in Israel-Iran war
Sensex Today | Stock Market LIVE on Monday, June 23, 2025: At 6:32 AM, GIFT Nifty futures were trading 148 points lower at 24,964, indicating a gap-down start for the bourses. 7:25 AM Stock Market LIVE Updates: Amazon enters India's $15 bn diagnostics market with at-home testing Stock Market LIVE Updates: Amazon India has launched Amazon Diagnostics, an at-home healthcare service that allows customers to book lab tests, schedule appointments and receive digital reports directly via the Amazon app. Initially available in six cities—Bengaluru, Delhi, Gurgaon, Noida, Mumbai and Hyderabad—the service covers more than 450 PIN codes and offers access to over 800 diagnostic tests. Customers can request doorstep sample collection within 60 minutes and receive digital reports for routine tests in as little as six hours, the company said. READ MORE 7:24 AM Stock Market LIVE Updates: Nearly 75 per cent of Indian CEOs say that the global uncertainty — driven by escalating tensions between Israel and Iran and the uncertain trade tariff environment — is 'somewhat impacting' their businesses. However, the remaining respondents do not foresee any significant disruptions, according to a nationwide dipstick survey of the CEOs conducted last week. Despite the geopolitical tensions, 83.33 per cent of the 12 CEOs surveyed by Business Standard affirmed that they are not altering their greenfield investment plans, even after US strikes on Iranian nuclear sites early Sunday raised the stakes in the region. READ MORE 7:23 AM Stock Market LIVE Updates: Crude shocks loom on domestic market as US joins Iran-Israel conflict Stock Market LIVE Updates: Investors may have to brace for heightened volatility on Monday, following the US military's direct involvement in the Iran-Israel conflict over the weekend. Analysts expect benchmark indices Sensex and Nifty to correct by 1-1.5 per cent if crude oil prices spike and Asian markets react negatively to the escalating tensions in West Asia. However, sustained buying by domestic institutional investors (DIIs) could help cushion the blow. Last week, Indian equities gained over 1.5 per cent despite rising hostilities between Iran and Israel. On early Sunday, US President Donald Trump announced targeted airstrikes on three of Iran's major nuclear facilities — Fordo, Natanz, and Isfahan — using stealth bombers and bunker-buster bombs. He described the strikes as a 'spectacular military success' and claimed Iran's nuclear enrichment capabilities had been 'obliterated'. Trump warned of further military action should Tehran retaliate. READ MORE 7:20 AM Stock Market LIVE Updates: It was an unprecedented attack years in the making, with some last-minute misdirection meant to give the operation a powerful element of surprise. US pilots dropped 30,000-pound bombs early Sunday on two key underground uranium enrichment plants in Iran, delivering what American military leaders believe is a knockout blow to a nuclear programme that Israel views as an existential threat and has been pummelling for more than a week. American sailors bolstered the surprise mission by firing dozens of cruise missiles from a submarine toward at least one other site. READ MORE 7:14 AM Stock Market LIVE Updates: RBI deepens scrutiny of bank board meetings and governance practices Stock Market LIVE Updates: The Reserve Bank of India (RBI) is taking a much closer look at bank board deliberations and may issue directives to improve governance practices. Senior officials in both state-run and private banks told Business Standard that following the developments at IndusInd Bank, the central bank's senior supervisory managers (SSMs) were asking questions on the agenda presented to boards, the time spent discussing specific items, and observations made by independent directors. READ MORE 7:10 AM Stock Market LIVE Updates: West Asia conflict: Exporters in dire straits as Hormuz trade route erupts Stock Market LIVE Updates: Shippers and logistics firms in India — key to the export–import (exim) trade — now fear no quick relief from the global shipping crisis in the Strait of Hormuz, which now is at the verge of closure. This follows the US bombing of three Iranian nuclear sites on Sunday and subsequent Iranian strikes on Israel. 'Freight rates have started rising, and the situation is volatile. With the US hitting critical Iranian nuclear sites, retaliation is expected, and tensions will stay high. This will affect oil prices and shipping charges. War risk premiums are already being added to shipments. Exporters have started feeling the heat in both air and sea freight,' said Dushyant Mulani, chairman of the Federation of Freight Forwarders' Associations in India. READ MORE 7:08 AM Stock Market LIVE Updates: US bombs Iran nuclear facilities: Impact on stocks, bonds, oil decoded here Stock Market LIVE Updates: Following Israel's attack on Iran's nuclear sites on 13 June, the US bombed three nuclear sites in Iran over the weekend. This military strike was widely anticipated by the market after Mr. Trump's recent warnings. The conflict could escalate further, as the US and Israel may push for the fall of Khamenei's regime in Iran, as it may retaliate to survive. Brent crude oil price is already up about 18 per cent in the past month, fearing escalation, but still remains below $80/bbl. Despite Iran being a heavily sanctioned country, it is estimated that Iran produces 3.0 to 4.0 million barrels of oil (world oil output of 103 million barrels last year), and it largely exports it to China. Iran warned that it may close the Strait of Hormuz (~26 per cent of oil trade), attack US military installations in the region, and take other military and diplomatic actions. READ MORE 7:05 AM Stock Market LIVE Updates: US markets end mixed on Friday
Hindustan Times
17 minutes ago
- Hindustan Times
Iran had threatened to activate sleeper cells in US in response to any strike: Report
Iran had communicated to US President Donald Trump that it could activate sleeper-cells terror inside the United States if the country is attacked. Police departments across the US said that they were deploying additional forces to religious, cultural, and diplomatic sites in their cities. (AFP) The communication was made last week, days ahead of the US surprise attack on three Iranian nuclear sites — Fordow, Natanz, and Esfahan — making an official entry into the Middle East conflict. The message was delivered to the US President through an intermediary at the G7 summit in Canada last week, which Trump left early amid escalating conflict between Iran and Israel, NBC reported quoting US officials. Israel Iran war LIVE Updates However, neither the US nor the Iranian Mission to the UN has responded to the report. The report, quoting a European diplomat, further said that the US and its allies believe that Iran has the capability to attack European and American nationals beyond US soil and beyond the Middle East. Also Read: US cities on high alert after Iran strikes, additional forces in New York, Washington The revelation comes a day after Donald Trump announced launching surprise strikes on a key underground uranium enrichment site at Fordow, along with nuclear facilities in Isfahan and Natanz early Sunday. Iran has meanwhile threatened US bases in the Middle East, saying that the military bases used by the American soldiers could be attacked in retaliation. US on high alert following Iran attacks The Donald Trump administration and the law enforcement agencies in major US cities are on high alert for any potential retaliation. The police departments in New York, Washington DC and Los Angeles released advisories stating that they are deploying additional forces to religious, cultural, and diplomatic sites across the city. The Department of Homeland Security has also warned that the "Iran conflict is causing a heightened threat environment in the United States." Also Read: As Iran threatens retaliation, US Embassy issues travel warning in Saudi Arabia There could be an increased possibility of terrorist attacks in the US homeland, particularly "if Iranian leadership issued a religious ruling calling for retaliatory violence against targets in the Homeland," according to the statement. The US State Department also issued a worldwide caution alert for its citizens travelling or living abroad, saying the conflict in the Middle East could put those traveling or living abroad at an increased security risk. Iran issues warning Iran has issued a warning threatening US bases in the Middle East following the US air strikes on its nuclear sites. Ali Akbar Velayati, an advisor to Iran's supreme leader Ayatollah Ali Khamenei, said bases used by US forces could be attacked in retaliation. "Any country in the region or elsewhere that is used by American forces to strike Iran will be considered a legitimate target for our armed forces," he said in a message, according to IRNA news agency. Also Read: Israeli strikes on Iran killed at least 950 people, claims human rights group "America has attacked the heart of the Islamic world and must await irreparable consequences," he added. President Masoud Pezeshkian also vowed that the US would "receive a response" to the attacks. Meanwhile, people gathered in central Tehran on Sunday to protest against US and Israeli attacks, waving flags and chanting slogans.
Hindustan Times
17 minutes ago
- Hindustan Times
Mideast shipping on high alert after US bombs Iranian nuclear sites
The shipping industry was placed on high alert on Sunday with warnings that Tehran could retaliate against commercial vessels following US airstrikes against Iran's nuclear facilities. Oil tankers pass through the Strait of Hormuz(Representative image/Reuters) Greece, home to more oil-tanker capacity than any other nation, cautioned its ship owners to think again if they're considering entering the Persian Gulf in the wake of US airstrikes. Vessels planning to sail through the Strait of Hormuz, the waterway that sits at the mouth of the region, should 'reassess passage' until the situation normalizes, according to a circular seen by Bloomberg that its shipping ministry sent to vessel owners. It advised waiting in nearby safe ports. Naval forces in the area warned that ships, especially US-linked ones, could be at heightened risk. Shipping giant A.P. Moller - Maersk A/S said it continues to transit Hormuz but is ready to re-evaluate its position based on the information available. The actions of the maritime industry — and its risk tolerance — will be a critical detail in the wake of the strikes because of Iran's proximity to the Strait of Hormuz, a conduit for a fifth of the world's oil and an unavoidable searoute into the Persian Gulf. Athens' warning is the latest sign of pressure on shipping markets as attacks on Iran escalate. Tanker earnings already soared by almost 90% since Israel first started conducting airstrikes on June 13. As one of the world's largest shipowning nations, advice to Greece's vessel owners would have a major impact on commodity transportation markets, especially oil. There's every chance shipowners will ignore the advice because the Persian Gulf is too-important a region for them to avoid and rates can always rise to compensate for the risk of sailing in the region. Operators that do decide to transit Hormuz should adopt the highest security level available and maintain the maximum possible distance from Iranian waters, Greece's ministry added. In Sunday's notice, the Greek ministry cited concern around a possible closure of Hormuz as a reason behind its message. Officials at three Greek tanker companies said they were still assessing the situation. One did indicate he might still allow his tankers to enter the region, while another said their ships would likely stay away. Greek government spokesman Pavlos Marinakis said in a statement that the government, via the shipping ministry, advised Greek-flagged and Greek-owned ships in the area of the Strait of Hormuz to go to safe port until the situation normalizes. Bigger Risk Naval groups are also warning of greater risk. On Sunday, the Joint Maritime Information Center, a liaison between navies and merchant shipping in the region, said that the Washington's airstrikes mean US-linked ships sailing through the Red Sea and Gulf of Aden face a high risk of attack. Yemen's Houthi rebel group issued fresh threats against American commercial and naval ships earlier in the day. There had been a ceasefire between the US and the Houthis in early May, geared toward limiting the group's attacks on the US navy. US-linked ships should consider re-routing, the JMIC said in its update. Still, it said some US-associated vessels have successfully transited the Strait of Hormuz, 'which is a positive sign for the immediate future.' Separately, the European Union's naval force in the region raised its threat assessment for US-linked vessels as a result of the strikes. It now sees a severe threat to ships linked to the US and Israel and a low risk for all other ships. 'This does not exclude the possibility of all merchant vessels being targeted in the future,' it said in an update published by France's MICA Center, which helps co-ordinate global maritime security.
