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New Straits Times
2 hours ago
- Business
- New Straits Times
Britain unveils 10-year industrial strategy to cut energy costs, support key sectors
LONDON: The British government on Monday unveiled a comprehensive 10-year Industrial Strategy aimed at addressing long-standing structural challenges in British industry, including high energy costs and prolonged delays in electricity grid connections, Xinhua reported. The plan includes targeted support for eight high-growth sectors such as advanced manufacturing, clean energy, and digital technology. A major feature of the strategy is the British Industrial Competitiveness Scheme, which aims to reduce electricity bills by up to 25 per cent for more than 7,000 energy-intensive businesses — including those in the steel and chemicals sectors — starting in 2027. The savings will be achieved by removing several existing charges on electricity bills that currently fund renewable energy generation and backup supply systems. Complementing this initiative, the British Industry Supercharger programme will expand support for approximately 500 companies in sectors such as ceramics, glass, and aluminium. These companies currently receive a 60 per cent discount on electricity network charges, which will rise to 90 per cent from 2026 — a move expected to lower operating costs and enhance global competitiveness. To address persistent delays in connecting to the electricity grid, the government plans to launch a Connections Accelerator Service by the end of 2025. The service will coordinate with energy providers, devolved governments and local authorities to expedite grid access for major investment projects. British Prime Minister Keir Starmer described the strategy as "a turning point for Britain's economy and a clear break from the short-termism and sticking plasters of the past". Chancellor of the Exchequer Rachel Reeves emphasised the plan's investment-friendly approach, saying it would ease business energy costs, unlock funding for advanced technologies, and support job creation. "It will boost our economy and create jobs that put more money in people's pockets," she said. The government stressed that the reforms would not result in higher taxes or household energy bills. Instead, they will be funded through adjustments to the national energy system and increased revenues from carbon pricing. Beyond energy reforms, the strategy includes sector-specific support for eight high-potential industries: advanced manufacturing, clean energy, creative industries, defence, digital and technologies, financial services, life sciences, and professional and business services. Each sector will receive tailored policy frameworks and funding packages over the next decade. While the announcement has been broadly welcomed by industry representatives, some experts and business leaders expressed concerns. Critics noted that although the electricity price reforms could improve competitiveness, they are unlikely to fully close the gap with lower industrial power costs in countries such as France and Germany. Britain's electricity prices remain closely tied to wholesale gas markets, which still account for a larger share of the country's energy mix compared to many European nations. Others questioned the government's ability to sustain long-term commitments, citing past inconsistencies in industrial policy. Several industry voices also urged faster implementation amid intensifying global competition for green investment. The government said detailed action plans for each sector will be published in phases over the coming months.
The Star
9 hours ago
- Business
- The Star
Britain unveils 10-year industrial strategy to cut energy costs, support key sectors
LONDON, June 23 (Xinhua) -- The British government on Monday unveiled a comprehensive 10-year Industrial Strategy designed to tackle long-standing structural challenges facing British industry, including high energy costs and lengthy delays in electricity grid connections. The plan also outlines targeted support for eight high-growth sectors, including advanced manufacturing, clean energy, and digital technology. A major component of the strategy is the British Industrial Competitiveness Scheme, which aims to reduce electricity bills by up to 25 percent for more than 7,000 energy-intensive businesses - including those in the steel and chemicals sectors - starting in 2027. These savings will come from removing several existing charges on electricity bills that currently fund renewable energy generation and backup supply systems. Complementing this initiative, the British Industry Supercharger program will expand support for approximately 500 companies in sectors such as ceramics, glass, and aluminum. These firms currently receive a 60 percent discount on electricity network charges, which will increase to 90 percent from 2026, a move expected to lower operating costs and enhance global competitiveness. To address persistent delays in connecting to the electricity grid, the government plans to launch a Connections Accelerator Service by the end of 2025. The service will work in coordination with energy providers, devolved governments, and local authorities to expedite grid access for major investment projects. British Prime Minister Keir Starmer hailed the strategy as "a turning point for Britain's economy and a clear break from the short-termism and sticking plasters of the past." Chancellor of the Exchequer Rachel Reeves emphasized the plan's investment-friendly approach, noting that it would ease business energy costs, unlock funding for advanced technologies, and support job creation. "It will boost our economy and create jobs that put more money in people's pockets," she said. The government stressed that the reforms would not lead to higher taxes or household energy bills. Instead, they will be financed through adjustments to the national energy system and increased revenues from carbon pricing. Beyond energy reforms, the strategy includes sector-specific support for eight high-potential industries: advanced manufacturing, clean energy, creative industries, defense, digital and technologies, financial services, life sciences, and professional and business services. Each sector will receive tailored policy frameworks and funding packages over the next decade. While industry representatives have broadly welcomed the announcement, some experts and business leaders have voiced reservations. Critics argue that although the electricity price reforms may enhance competitiveness, they are unlikely to fully close the gap with lower industrial power costs in countries like France and Germany. Britain's electricity prices remain closely linked to wholesale gas markets, which still account for a larger share of Britain's energy mix than in many European countries. Others questioned the government's ability to follow through on its long-term commitments, citing past inconsistencies in industrial policy. Several industry voices also called for faster implementation amid intensifying global competition for green investment. The government said detailed action plans for each sector will be published in phases over the coming months.
