Source: Sharecast
Under the wide-ranging, ten-year plan, more than 7,000 energy-intensive businesses will see their electricity costs cut by up to 25% from 2027 under a new British industrial competitiveness scheme.
The programme will see a range of companies exempted from green levies, with eligibility criteria will determined following a consultation.
The government also said fees required to connect to the electricity grid for energy-intensive firms such as a steel would be discounted.
The industrial plan, which is intended to boost investment and create skilled jobs across the UK, is focused on eight core sectors.
These are professional and business services, clean energy, defence, digital and technologies, life sciences, creative industries, advanced manufacturing and financial services.
Other reforms include a major investment in research and development, boosting defence spending, and expanding access to finance by giving the British Business Bank additional capital.
The government also intends to cut the administrative costs of regulation by 25%, while planning decisions for critical projects will be fast tracked.
Publishing the white paper, Jonathan Reynolds, business secretary, said: “The world is entering a new era that needs a new economic approach, one that realises Britain’s potential…and secures our industries for the future.”
He added that the strategy would “bring growth to the cities and regions of the UK”.
Stephen Phipson, chief executive of manufacturing trade body Make UK, said a skills crisis, high energy costs and poor access to capital was hurting competitiveness, growth and productivity.
He continued: “The strategy sets out comprehensive and well-funded plans to address all three of these structural failings.”
Make UK was one of seven business groups, including the CBI and Federation of Small Businesses, that welcomed the strategy through a joint statement.
“We welcome the government’s engagement with business across the UK,” it said. “Much of what we’ve shared has been heard and reflected in this strategy. While there’s more to do, we are ready to support the next steps.
“We encourage businesses nationwide to get behind this strategy.”
However, Kate Nicholls, chief executive of UKHospitality, said: “This is not an industrial strategy that will deliver growth equally across the UK. In fact, by ignoring 70% of the economy it is at odds with the government’s ambition to create jobs and help people into work.
“We were desperate to see a plan for hospitality and the high street. We were disappointed.”
