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)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Leader Live
19 minutes ago
- Leader Live
Brexit rules spark ‘clear demand' for more motorhome parking, lobby group says
Boosting provision for these vehicles would generate more revenue for local businesses and increase the number of visitors to tourist destinations outside the peak summer season, the Campaign for Real Aires (Campra) said. Aires is a French word used to describe designated stopping places for motorcaravans – the collective term for motorhomes and campervans – which are much more common in continental Europe than the UK. Post-Brexit rules mean UK passport holders are prohibited from being in the Schengen area – which covers most of the European Union and some other European nations – for more than 90 days within a 180-day period. That means many UK-based motorcaravan users are seeking domestic destinations for overnight trips. But a survey of 6,731 users suggested 88% are dissatisfied with the UK's availability of overnight parking in desirable locations. The poll also indicated that motorcaravaners spend an average of £51 per day in local businesses and £23 per night on overnight parking or campsite fees. Many respondents commented on the UK's lack of infrastructure and welcoming attitude compared with continental Europe, Campra said. Last month, Hampshire County Council approved plans to ban campervans and motorhomes from staying overnight at the south coast beauty spot of Keyhaven, near Lymington. It claimed the move would 'bring order' to the area. Campra managing director Steve Haywood said welcoming motorcaravans to an area 'can be a hugely positive move'. He went on: 'There is a clear demand – emphasised by post-Brexit travel restrictions – for more overnight stay options in UK towns and cities, and those towns and cities could benefit hugely by embracing motorcaravans. 'More councils are seeing the benefits of providing facilities, instead of suffering the cost of enforcement and bans, not to mention the loss of potential revenue to businesses. 'In Fleetwood, Lancashire, for example, the introduction of overnight parking in the seafront car park for £5 per night has seen a huge boost in revenue for local shops, and has been so successful that additional facilities are now being planned for motorcaravanners. 'Every council that has operated a 12-month trial aire has been successful and made the overnight parking permanent.' Driver and Vehicle Licensing Agency figures show more than 416,000 motorcaravans are registered in the UK. A spokesperson for the Local Government Association said: 'Policies around overnight motorcaravan parking and the provision of facilities are a matter for local councils.'
South Wales Guardian
21 minutes ago
- South Wales Guardian
British father-to-be feels like ‘second class citizen' over family visa rules
David Todd, 33, is calling on the Government to reform the policy, including to scrap or lower the minimum income requirement (MIR) for British citizens to bring their partners to the country, as ministers mull over updating the visa route. His plea comes as charities Reunite Families UK and Coram published reports on Monday documenting the 'significant emotional and psychological harm' to families from the policy, particularly for children who grow up under long separation from one of their parents. Mr Todd had hoped to move back to the UK from Germany with his American wife, Claire Todd, 32, before the birth of their first baby which is due in October. But the couple are facing being split up for Mr Todd to return to the UK alone to build up enough income proof as the British citizen in the relationship, or raise savings of more than £88,500 dictated by the visa rules to allow them to return as a family. Mr Todd told the PA news agency: 'There's been lots of times where I've stayed awake at night worrying about it and how it's all going to work out, because you feel completely helpless. 'It's like we're second class citizens because we married someone who fell in love with someone who wasn't British.' Earlier this month the Migration Advisory Committee (MAC) set out its recommendations after a review requested by the Home Secretary to look at how to set an MIR for family visas that balances economic wellbeing and family life. It warned against raising the threshold for family visas to the same level for skilled workers, as planned by the previous government. Skilled workers are only eligible to come to the UK if they earn a salary of £38,700 or more, compared to £29,000 required mainly for family visas. The UK's current £29,000 threshold, which was set in 2024, is high compared to other high-income countries reviewed by the MAC. It was previously set at £18,600 since 2012. Mr Todd, from Solihull, West Midlands, added increasing the level to £38,700 would be 'devastating'. 'Even with this MAC report now, we don't know what the Government's going to do, how they're going to react,' the classical music conductor said. 'It's this feeling that you're kind of helpless, you're stuck in limbo, and you're desperately trying to contort yourself into this position where you can make it work just because you want to live with your wife or husband.' The couple, living in Wurzburg, Germany, first left the UK after Ms Todd's student visa ended and moved to the European nation so they could be together seven years ago. After building 'good careers' as classical musicians on the continent, the couple began trying to make a return to the UK up to a year ago, wanting to be near family as they start their own. For Mr Todd, he said the Government should at least make the ways to prove income easier, and to include the spouse's salary to contribute to the income threshold. He said it is 'ridiculous' his wife's income cannot be used to meet the salary requirement despite her remote job as a content creator paying enough to mean they 'could move to the UK tomorrow'. Mr Todd said he wants to 'avoid at all costs' the prospect of being separated from his wife and child, adding: 'It just feels wrong, am I going to have to turn to my child when she's older and say to her: 'Well, sorry, the reason I wasn't with you for the first year of your life was because I was trying to get work for the family to move.'' British father Ed Moon, currently living in Taipei with his Taiwanese wife Amber Moon and four-year-old daughter Maya, is also applying to the family visa route to move back to the UK as Maya reaches school age. He told PA the most difficult thing is the 'extremely extensive' documentation you need to provide with any errors meaning the visa is denied and the process must be started again, with visa fees costing around £2,000. 'We're having to dip into every ounce of our savings to do this,' the 36-year-old from High Wycombe, Buckinghamshire, said. 'You feel just unwanted by your country essentially. It's been especially tough, really like from a personal perspective.' The journalist also said it is a waste of money for the taxpayer for him to grow up and be educated in the UK, to then not let him and his family live there, adding: 'I want to be able to contribute to the UK.' The research by Reunite Families and Coram found that British citizens face exile, increased financial pressure and separation from their partners often for long periods of time from the family visa policy. For children separated from one of their parents, the charities warned they can face life-changing trauma and distress. The report also highlighted how the rules particularly discriminate against those including British mothers, who are more likely to experience hardship, working class and low income partners and black and ethnic minority workers, who are more likely to earn less than their white counterparts. Reunite Families UK executive director Caroline Coombs said 'simple and practical changes' from the Home Office could make significant differences to families, starting with scrapping the MIR and simplifying the rules and application process to stop the need for expensive legal advice. 'These rules have become the tax on love. People are suffering and want to be heard.' A Home Office spokesperson said: 'We understand the minimum income requirement for family visas needs to balance a respect for family life while also maintaining the UK's economic stability, which is why the Home Secretary commissioned the independent Migration Advisory Committee to undertake a review. 'We are now considering its findings and will respond in due course.'
South Wales Guardian
22 minutes ago
- South Wales Guardian
Brexit rules spark ‘clear demand' for more motorhome parking, lobby group says
Boosting provision for these vehicles would generate more revenue for local businesses and increase the number of visitors to tourist destinations outside the peak summer season, the Campaign for Real Aires (Campra) said. Aires is a French word used to describe designated stopping places for motorcaravans – the collective term for motorhomes and campervans – which are much more common in continental Europe than the UK. Post-Brexit rules mean UK passport holders are prohibited from being in the Schengen area – which covers most of the European Union and some other European nations – for more than 90 days within a 180-day period. That means many UK-based motorcaravan users are seeking domestic destinations for overnight trips. But a survey of 6,731 users suggested 88% are dissatisfied with the UK's availability of overnight parking in desirable locations. The poll also indicated that motorcaravaners spend an average of £51 per day in local businesses and £23 per night on overnight parking or campsite fees. Many respondents commented on the UK's lack of infrastructure and welcoming attitude compared with continental Europe, Campra said. Last month, Hampshire County Council approved plans to ban campervans and motorhomes from staying overnight at the south coast beauty spot of Keyhaven, near Lymington. It claimed the move would 'bring order' to the area. Campra managing director Steve Haywood said welcoming motorcaravans to an area 'can be a hugely positive move'. He went on: 'There is a clear demand – emphasised by post-Brexit travel restrictions – for more overnight stay options in UK towns and cities, and those towns and cities could benefit hugely by embracing motorcaravans. 'More councils are seeing the benefits of providing facilities, instead of suffering the cost of enforcement and bans, not to mention the loss of potential revenue to businesses. 'In Fleetwood, Lancashire, for example, the introduction of overnight parking in the seafront car park for £5 per night has seen a huge boost in revenue for local shops, and has been so successful that additional facilities are now being planned for motorcaravanners. 'Every council that has operated a 12-month trial aire has been successful and made the overnight parking permanent.' Driver and Vehicle Licensing Agency figures show more than 416,000 motorcaravans are registered in the UK. A spokesperson for the Local Government Association said: 'Policies around overnight motorcaravan parking and the provision of facilities are a matter for local councils.'
