UK’s new industrial strategy to cut electricity costs for business by 25%

The UK government has unveiled a ten-year industrial strategy designed to lower electricity expenses for more than 7,000 businesses by as much as 25% from 2027.

The comprehensive plan is set to unlock billions in investment and support 1.1 million new jobs up to 2035.

Developed through a collaborative effort with industry leaders, the strategy aims to establish Britain as an optimal location for business investment and growth.

It will address two of the most significant challenges confronting the UK manufacturing industry: elevated electricity prices and lengthy delays in securing grid connections.

The country’s manufacturing sector currently faces some of the highest electricity prices within developed nations.

Additionally, these industries have been struggling with lengthy grid connection delays, which have stifled expansion efforts.

The newly announced British Industrial Competitiveness Scheme will alleviate financial pressures for eligible energy-intensive businesses such as automotive, aerospace and chemicals by reducing per megawatt hour (MWh) costs by up to £40.

The move will enhance international competitiveness, maintaining more than 300,000 skilled positions across a range of sectors.

UK Prime Minister Keir Starmer stated: “This industrial strategy marks a turning point for Britain’s 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’s pockets as part of the plan for change.”

Companies operating within highly energy-dependent fields such as steel and glass production will receive increased governmental support via the British Industry Supercharger programme.

These businesses currently receive a 60% discount on network charges. From 2026, this discount will increase to 90%.

These measures seek to sustain their competitive edge while safeguarding employment opportunities without additional taxpayer burden.

The reforms also align with the government’s broader commitment towards clean power generation, which is a long-term approach intended to reduce reliance on unpredictable fossil fuel markets.

Energy Secretary Ed Miliband stated: “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’re unlocking the potential of British industry by slashing industrial electricity prices in key sectors. We’re 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.”

To further bolster industrial growth and job creation, officials are introducing a connections accelerator service aimed at expediting access to electrical grids for major projects deemed economically beneficial.

In June 2025, the Crown Estate of the UK revealed plans to invest up to £400m ($462m) to strengthen the country’s offshore wind supply chain.

The investment tackles existing capacity limitations to expedite the deployment of clean energy across the nation, while also fostering growth opportunities within local communities.