UK Launches 10-Year Industrial Strategy to Cut Energy Costs and Boost Growth
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By The Venture Focal | Summary based on original reporting by Financial Times (23 June 2025)
The UK government has unveiled a bold new plan to revitalise domestic industry and tackle one of its biggest challenges: high energy costs. Under the British Industrial Competitiveness Scheme, more than 7,000 businesses will benefit from a £2 billion package rolling out from 2027. A key feature is the removal of green levies—such as feed-in tariffs and renewables obligations—helping lower electricity bills by as much as 25%.
The move also significantly expands the British Industry Supercharger, boosting electricity network charge discounts from 60% to 90% for around 500 high-energy-use firms in sectors like steel, aerospace, chemicals and ceramics.
The government will also:
Launch a new Connections Accelerator Service to speed up grid access
Establish Industrial Strategy Zones to simplify local industrial incentives
Invest £275 million in skills and apprenticeships
Direct £380 million into the UK’s creative sectors
“It will see billions of pounds for investment and cutting-edge tech, ease energy costs and upskill the nation,” said Business Secretary Jonathan Reynolds.
The strategy will be funded without raising household bills, instead relying on carbon pricing revenues and reallocated levy reform.
Our Take:
This strategy shows Labour’s serious intent to compete globally—by reducing input costs, building industrial hubs, and closing the grid access bottleneck. While execution will be complex, it’s a signal to investors that the UK is open for industrial business again. The blend of green reform and infrastructure expansion could be the reset British industry has waited for.
📌 Original Source:
Financial Times, 23 June 2025
Original article: https://www.ft.com/content/cd73fa21-ea81-42fa-979e-8d7fec203e3f
Excerpt used under fair dealing: “It will see billions of pounds for investment and cutting-edge tech, ease energy costs and upskill the nation,” said Business Secretary Jonathan Reynolds.
