New Industrial Strategy to Slash Energy Bills and Back British Business
The UK Government has launched a major 10-year Industrial Strategy aimed at cutting business costs, creating over 1.1 million good skilled jobs, and making the UK a world leader in clean, competitive industries.
A headline measure is a plan to cut electricity bills by up to 25% for more than 7,000 energy-intensive businesses starting in 2027. Companies in sectors like automotive, aerospace, steel, and chemicals will benefit from new exemptions on energy levies and deeper discounts on electricity network charges.
These changes, delivered through the British Industrial Competitiveness Scheme and an expanded British Industry Supercharger, aim to reduce the UK’s industrial energy costs - some of the highest in the developed world - and help British firms compete globally.
The new strategy also tackles delays in connecting to the energy grid, with a Connections Accelerator Service expected to launch at the end of 2025 to speed up access for major investment projects.
What It Means for Businesses Looking to Grow
The strategy includes measures that could make a real difference for businesses with ambitions to scale up or modernise. These include:
- Technology adoption support for more than 5,000 firms through the Made Smarter programme
- A streamlined centralised Business Growth Service to make government support easier to access
- Simpler planning rules and faster grid connections for new sites and facilities
- Easier access to investment and skills training, including short courses in high-demand sectors
- Cutting red tape, reducing regulatory costs for businesses by 25%
These measures may help to give growth-focused businesses the tools and confidence to invest, hire and compete.
Targeted Investment Across Key Sectors
The strategy focuses on eight high-potential sectors, including clean energy, advanced manufacturing, digital and technologies, creative industries, and professional and business services, with tailored plans and billions in public and private investment.
While the Industrial Strategy has been welcomed by many business leaders, the strategy’s success will depend on how it is delivered and implemented across the coming decade.
The Tax Faculty of the Institute of Chartered Accountants in England and Wales (ICAEW) is encouraging employers to take a fresh look at the Employment Allowance. If you have a payroll and are not already claiming this allowance, it could reduce your employer national insurance contributions (NICs) by up to £10,500 for the 2025/26 tax year.
Business owners across the UK are facing an increasingly complex economic picture. Inflation has crept up again and recent figures show the economy has contracted for two months in a row. So, what’s really going on - and what should you be doing as a business owner?