天美影院

More than 7,000 British businesses are set to see their electricity bills slashed by up to 25% from 2027, as the Government unveils its bold new Industrial Strategy today [Monday 23 June].

The modern Industrial Strategy sets out a ten-year plan to boost investment, create good skilled jobs and make Britain the best place to do business by tackling two of the biggest barriers facing UK industry - high electricity prices and long waits for grid connections.

British manufacturers currently pay some of the highest electricity prices in the developed world while businesses looking to expand or modernise have faced delays when it comes to connecting to the grid.

For too long these challenges have held back growth and made it harder for British firms to compete. Today鈥檚 announcement marks a decisive shift 鈥� with government stepping in to support industry and unlock the UK鈥檚 economic potential.

From 2027, the new British Industrial Competitiveness Scheme will reduce electricity costs by up to 拢40 per megawatt hour for over 7,000 electricity-intensive businesses in manufacturing sectors like automotive, aerospace and chemicals.听Hundreds of Scottish businesses could be in line to benefit.

These firms, which support over 300,000 skilled jobs, will be exempt from paying levies such as the Renewables Obligation, Feed-in Tariffs and the Capacity Market 鈥� helping level the playing field and make them more internationally competitive. Eligibility and further details on the exemptions will be determined following consultation, which will be launched shortly.

The government is also increasing support for the most energy-intensive firms 鈥� like steel, chemicals, and glass 鈥� by covering more of the electricity network charges they normally have to pay through the British Industry Supercharger. These businesses currently get a 60% discount on those charges, but from 2026, that will increase to 90%. This means their electricity bills will go down, helping them stay competitive, protect jobs, and invest in the future.

This will help around 500 eligible businesses in sectors such as steel, ceramics and glass reduce their costs and protect jobs in industries that are the backbone of our economy and will be delivered at no additional cost to the taxpayer.听The support for steel manufacturing is crucial as it鈥檚 a critical enabling industry for Scotland鈥檚 world leading defence and renewable energy sectors.

These reforms complement the government鈥檚 long-term mission for clean power, which is the only way to bring down bills for good by ending the UK鈥檚 dependency on volatile fossil fuel markets.

To ensure businesses can grow and hire without delay, the government will also deliver a new Connections Accelerator Service to streamline grid access for major investment projects 鈥� including prioritising those that create high-quality jobs and deliver significant economic benefits.

We will work closely with the energy sector, local authorities, Scottish and Welsh Governments, trade unions, and industry to design this service, which we expect to begin operating at the end of 2025. New powers in the Planning and Infrastructure Bill, currently before parliament, could also allow the Government to reserve grid capacity for strategically important projects, cutting waiting times and unlocking growth in key sectors.

The Industrial Strategy is a 10-year plan to promote business investment and growth and make it quicker, easier and cheaper to do business in the UK, giving businesses the confidence to invest and create 1.1 million good, well-paid jobs in thriving industries 鈥� delivering on this government鈥檚 Plan for Change.

Prime Minister Keir Starmer said:

This Industrial Strategy marks a turning point for Britain鈥檚 economy and a clear break from the short-termism and sticking plasters of the past.

In an era of global economic instability, it delivers the long term certainty and direction British businesses need to invest, innovate and create good jobs that put more money in people鈥檚 pockets as part of the Plan for Change.

This is how we power Britain鈥檚 future - by backing the sectors where we lead, removing the barriers that hold us back, and setting out a clear path to build a stronger economy that works for working people. Our message is clear - Britain is back and open for business.

Scottish Secretary Ian Murray today visited a new industrial development in East Lothian, on the site of a former coal-fired power station. The redevelopment site is partly funded by an 拢11 million UK Government investment, and includes the construction of a new interconnecter to take power from the Inchcape offshore wind farm to the National Grid.听

Also joint Department for Business and Trade/HM Treasury Minister for Investment, Baroness Poppy Gustafsson, will meet senior figures from Dundee鈥檚 life sciences and tech, gaming, and creative sectors later.听

Speaking ahead of his visit听Mr Murray said:

Scotland is rightly at the heart of the UK Government鈥檚 Industrial Strategy with our businesses and expertise integral to further creating jobs and economic growth through the eight sectors identified.

Advanced manufacturing, clean energy, creative Industries, defence, digital and technologies, financial services, life sciences and professional and business services, Scotland excels at them all. But we have the potential to go much further. And by slashing electricity costs for Scottish businesses, increasing business investment and cutting red tape the UK Government is helping turbocharge the economy, create jobs and put more money in the pockets of working Scots as part of our Plan for Change.

We have a proud industrial heritage and with this new comprehensive 10 year strategy Scotland and the wider UK has an exciting future.

Chancellor of the Exchequer Rachel Reeves said:

The UK has some of the most innovative businesses in the world and our Plan for Change has provided them with the stability they need to grow and for more to be created.

Today鈥檚 Industrial Strategy builds on that progress with a ten-year plan to slash barriers to investment. It鈥檒l see billions of pounds for investment and cutting-edge tech, ease energy costs, and upskill the nation. It will ensure the industries that make Britain great can thrive. It will boost our economy and create jobs that put more money in people鈥檚 pockets.

Business and Trade Secretary Jonathan Reynolds said:

We鈥檝e said from day one Britain is back in business under this government, and the 拢100 billion of investment we鈥檝e secured in the past year shows our Plan for Change is already delivering for working people.

Our Modern Industrial Strategy will ensure the UK is the best country to invest and do business, delivering economic growth that puts more money in people鈥檚 pockets and pays for our NHS, schools and military.

Not only does this Strategy prioritise investment to attract billions for new business sites, cutting-edge research, and better transport links, it will also make our industrial electricity prices more competitive.

Tackling energy costs and fixing skills has been the single biggest ask of us from businesses and the greatest challenge they鈥檝e faced 鈥� this government has listened, and now we鈥檙e taking the bold action needed. Government and business working hand in hand to make working people better off is what this Government promised and what we will deliver.

Energy Secretary Ed Miliband said:

For too long high electricity costs have held back British businesses, as a result of our reliance on gas sold on volatile international markets.

As part of our modern industrial strategy we鈥檙e unlocking the potential of British industry by slashing industrial electricity prices in key sectors.

We鈥檙e also doubling down on our clean power strengths with increased investment in growth industries from offshore wind to nuclear. This will deliver on our clean power mission and Plan for Change to bring down bills for households and businesses for good.

The Supercharger and British Industrial Competitiveness Scheme will be funded through reforms to the energy system. The government is reducing costs within the system to free up funding without raising household bills or taxes and intends to also use additional funds from the strengthening of UK carbon pricing, including as a result of linking with the EU carbon market.

We have set out an intention to link emissions trading systems, as part of our new agreement with the European Union to support British businesses. Without an agreement to do this, British industry would have to pay the EU鈥檚 carbon tax.

We intend to link our carbon pricing system with the EU鈥檚, we will ensure that money stays in the UK鈥攚hich allows us to support British companies and British jobs through these schemes.

Building on the Spending Review and the recently announced 10-Year Infrastructure Strategy, the Industrial Strategy is the latest step forward in our plans to deliver national renewal. It will include targeted support for the areas of the country and economy that have the greatest potential to grow, while introducing reforms that will make it easier for all businesses to get ahead.

The Strategy鈥檚 bold plan of action includes:

• Slash electricity听costs听by up to 25% from 2027 for electricity-intensive manufacturers in our growth sectors and foundational industries in their supply chain, bringing costs more closely in line with other major economies in Europe.

• Unlocking billions in finance for innovative business, especially for SMEs by increasing British Business Bank financial capacity to 拢25.6 billion, crowding in tens of billions of pounds more in private capital. This includes an additional 拢4bn for Industrial Strategy Sectors, crowding in billions more in private capital. By investing largely through venture funds, the BBB will back the UK鈥檚 most high-growth potential companies.

• Reducing regulatory burdens听by cutting the administrative costs of regulation for business by 25% and reduce the number of regulators.听

• Supporting 5,500 more SMEs to adopt new technology听through the Made Smarter programme while centralising government support in one place through the Business Growth Service.

• Boosting R&D spending听to 拢22.6bn per year by 2029-30 to drive innovation across the IS-8, with more than 拢2bn for AI over the Spending Review, and 拢2.8bn for advanced manufacturing over the next ten years. This will leverage in billions more from private investors. Regulatory changes will further clear the path for fast-growing industries and innovative products such as biotechnology, AI, and autonomous vehicles.

• Attracting elite global talent to our key sectors,听via visa and migration reforms and the new Global Talent Taskforce.

• Deepening economic and industrial collaboration with our partners,听building on our Industrial Strategy Partnership with Japan and recent deals with the US, India, and the EU.

• Revolutionising public procurement听and reducing barriers for new entrants and SMEs to bolster domestic competitiveness.

• Supporting the UK鈥檚 city regions and clusters听by increasing the supply of investible sites through a new 拢600m Strategic Sites Accelerator,听at six locations to be chosen across the UK, enhanced regional support from the Office for Investment, National Wealth Fund, and British Business Bank, and more,听including听听with the Scottish Government to support the Edinburgh-Glasgow Central Belt.

• Strengthening existing 鈥淚ndustrial Strategy Zones鈥澨�鈥� in Scotland these are the Forth Green Freeport, Cromarty Firth Green Freeport, Glasgow City Region and the North East Scotland Investment Zones - with听an enhanced offer of streamlined planning, better-targeted investment promotion, support for accessing concessionary finance and coordinated support on skills.

• Delivering AI Growth Zones听to听attract investment in AI infrastructure in strategic locations across the UK, including Scotland, with support for planning, access to energy, and partnerships with the private sector.

• Growing high-potential innovation ecosystems听through the Local Innovation Partnerships Fund, with at least 拢30m for Scotland, building on UK-wide public R&D investment and Innovate UK鈥檚 joint action plans with devolved governments.

• Identifying and securing the right financing听for investment projects in Scotland with the National Wealth Fund, working with the Scottish National Investment Bank.听听

• Using a British Business Bank Cluster Champion听in Glasgow City Region, with deep expertise and local knowledge, to coordinate investment-readiness programmes, strengthen financial networks, and connect high-potential firms to investors.

The plan focuses on 8 sectors where the UK is already strong and there鈥檚 potential for faster growth: Advanced Manufacturing, Clean Energy Industries, Creative Industries, Defence, Digital and Technologies, Financial 天美影院, Life Sciences, and Professional and Business 天美影院. Each growth sector has a bespoke 10-year plan that will attract investment, enable growth and create high-quality, well-paid jobs.

Dame Clare Barclay DBE, Chair of the Industrial Strategy Advisory Council and President of Enterprise & Industry EMEA at Microsoft said:

I welcome today鈥檚 Industrial Strategy, which sets out a clear plan to back the UK鈥檚 growth driving sectors. It is particularly positive to see the strong focus on skills in areas such as engineering, technology and defence. Commitments such as 拢187 million for the TechFirst programme will ensure the UK has the skills it needs to support our growth industries and seize transformative opportunities like AI.

Rain Newton-Smith, Chief Executive, CBI said:

Today鈥檚 Industrial Strategy announcement is a significant leap forward in the partnership between government and business that sets us on the path to our shared goal of raising living standards across the country.听听

It sends an unambiguous, positive signal about the nation鈥檚 global calling card as well as the direction of travel for the wider economy for the next decade and beyond.

The CBI has long been advocating for a comprehensive industrial strategy, based on the UK鈥檚 USP - the sectors and markets where we can compete to win on the global stage.

More competitive energy prices, fast-tracked planning decisions and backing innovation will provide a bedrock for growth. But the global race to attract investment will require a laser-like and unwavering focus on the UK鈥檚 overall competitiveness.听

Today marks the beginning of delivering this strategy in close partnership, at pace, and with a shared purpose.听

Stephen Phipson CBE, CEO at Make UK said:

British industry has been in desperate need for a government who understands our sector and had the strategic vision for a plan for growth. Today鈥檚 Industrial Strategy is a giant and much needed step forward taken by the Secretary of State who has seen the potential and provided the keys to help unlock it.

Make UK has led the campaign for a new industrial strategy for many years, highlighting the three major challenges that were diminishing our competitiveness, hampering growth and frustrating productivity gains: a skills crisis, crippling energy costs and, an inability to access capital for new British innovators.

The strategy announced today sets out plans to address all three of these structural failings. Clearly there is much to do as we move towards implementation but, this will send a message across the Country and around the world that Britain is back in business.

Tufan Erginbilgic, Rolls-Royce CEO, said:

The UK Government鈥檚 Industrial Strategy commitment to support our world-leading aerospace and nuclear industries shows long-term strategic foresight. Rolls-Royce鈥檚 highly differentiated technologies in gas turbines and nuclear capabilities- including SMRs and AMRs- are uniquely placed to deliver economic growth, skilled jobs and attract investment into the UK.

Mike Hawes OBE, SMMT Chief Executive said:

The publication of an Industrial Strategy 鈥� one with automotive at its heart 鈥� is the policy framework the sector has long-sought and Government has now addressed. Such a strategy 鈥� long-term, aligned to a trade strategy and supported by all of Government 鈥� is the basis on which the UK automotive sector can regain its global competitiveness. Making the UK the best place to invest now depends on implementation, and implementation at pace, because investment decisions are being made now against a backdrop of fierce competition and geopolitical uncertainty. The number one priority must be addressing the UK鈥檚 high cost of energy, enabling the sector to invest in the technologies, the products and the people that will give the UK its competitive edge.听

Five sector plans have been published today:

• Advanced Manufacturing -听Backing our Advanced Manufacturing sector with up to 拢4.3 billion in funding, including up to 拢2.8 billion in R&D over the next five years, with the aim of anchoring supply chains in the UK - from increasing vehicle production to 1.35 million, to leading the next generation of technologies for zero emission flight.听Glasgow is a global force in advanced manufacturing -听 home to the Advanced Manufacturing Innovation District and globally competitive universities, the city region has strengths across defence, space and quantum. Edinburgh houses the National Robotarium at Heriot-Watt University and the Roslin Institute, which is a leading Agri-Tech research centre.听

• Clean Energy Industries -听Doubling investment in Clean Energy Industries by 2035, with听Aberdeen-headquartered听Great British Energy helping to build the clean power revolution in Britain with a further 拢700 million in clean energy supply chains, taking the total funding for the Great British Energy Supply Chain fund to 拢1 billion.听We are supporting Scottish clean energy industries with 拢200 million development funding to advance the Acorn Carbon Capture and Storage project, capitalising on expertise in the oil and gas sector around Aberdeen. Up to 拢185 million has been allocated to Scotland through the Clean Industry Bonus, unlocking up to 拢3.5 billion private sector investment in ports and high-tech components needed to build floating and fixed offshore wind farms. Aberdeen is a global energy capital boasting new investment in hydrogen, with its pioneering Energy Transition Zone repositioning the North East as a globally integrated energy cluster.听 A new regional skills pilot for Aberdeen will also help ensure a strong local skills base to deliver these opportunities.

• Creative Industries -听Maximizing the value of our Creative Industries through a 拢380 million boost for film and TV, video games, advertising and marketing, music and visual and performing arts will improve access to finance for scale-ups and increase R&D, skills and exports.听It includes a 拢30 million Games Growth Package to back the next generation of UK video games studios - a sector in which Scotland is world leading. Glasgow, Edinburgh and Dundee are centres for creative industries. The Edinburgh Festivals incubate creative talent, whilst Edinburgh Futures Institute drives innovation.

• Digital and Technologies -听Making the UK the European leader for creating and scaling Digital and Technology businesses, with more than 拢2 billion to drive the AI Action Plan, including a new Sovereign AI Programme, 拢187 million for training one million young people in tech skills and targeting R&D investment at frontier technologies such as quantum technologies in Scotland.听Scotland is home to two of the UK鈥檚 five new Quantum Hubs, with involvement in all five. Ten of the top 30 global semiconductor companies have operations in Scotland. Scotland is also home to cutting edge AI research network and R&D infrastructure - Edinburgh Genome Biofoundry and Industrial Biotechnology Innovation Centre. An up to 拢750m investment in the UK鈥檚 largest supercomputer at the University of Edinburgh sets a marker for our ambition for further growth in digital & technologies.

• Professional and Business 天美影院 -听Ensuring our Professional and Business 天美影院 becomes the world鈥檚 most trusted adviser to global industry, revolutionising the sector across the world through adoption of UK-grown AI and working to secure mutual recognition of professional qualifications agreements overseas.听Scotland鈥檚 financial services sector, second only to London, features a cutting-edge Fintech scene. Over 25% of Glasgow鈥檚 top tech firms are in financial & business services, attracting major firms such as Azets and RSM. This is anchored by a highly capable workforce, supported by a world-class skills ecosystem and universities.
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The Industrial Strategy will be published on听听later today.

The Defence, Financial 天美影院 and Life Sciences sector plans will be published shortly.

The 7,000 businesses are an indicative estimate of how many businesses could be in scope of the scheme. The full scope and eligibility of the scheme will be determined following consultation.