Britain plans to cut green levies for industry as part of a new 10-year industrial strategy released on Monday, aiming to lower energy costs for manufacturers and boost competitiveness.
Starting in 2027, electricity-intensive companies could see energy bills fall by up to 25 percent, potentially benefiting over 7,000 businesses.
The government said the relief for these companies would come through energy system reforms without raising household bills or taxes. The details on eligibility and scope will be finalized after a consultation.
The strategy, covering 2025 to 2035, comes as the government focuses on reversing slow economic growth. Businesses and lawmakers have long flagged high energy costs and skill shortages as major challenges for industry.
To address these issues, the government will increase the British Business Bank’s role in financing small companies and allocate an extra £1.2 billion per year for skills development by 2028–29. It also plans to reduce regulatory burdens on businesses.
The strategy continues to include clean energy as a key sector, alongside advanced manufacturing, defence, and creative industries. Despite calls from some sectors to remove climate levies, the government has chosen to exempt only the most energy-intensive companies.
The government said past policies either neglected or overregulated industry, and the new approach seeks a more balanced role for the state. It also aims to help workers affected by past deindustrialization.
Prime Minister Keir Starmer’s administration said it wants to provide more consistent support for industry, ranging from energy and skills to investment and planning.
Engineering and business groups welcomed the energy and skills focus. However, others, including hospitality sector representatives, criticized the plan for being too limited in scope.
