Our regeneration dreams crushed by energy costs

BRITAIN'S sky-high energy costs threaten to wreck hopes of growing the economy and regenerating former industrial heartlands with the technologies of tomorrow, Labour has been warned.

- David Williamson

Lord Ben Houchen, the mayor at the heart of efforts to turn the former Redcar Steelworks into a thriving freeport described the cost of energy as the "biggest challenge" facing the 4,500-acre project.

The International Energy Association reported the UK had the highest industrial electricity prices of its members in 2023.

Electricity cost just 6.5p per kWh in the US but 26p in the UK.

Lord Houchen warned of the impact on his region, saying while companies making investment decisions could secure sites, planning permission and the benefits of the freeport, if the UK is not "competitive on energy pricing" they "can spend their money elsewhere".

If Britain fails to reduce bills for both businesses and people, he added, "this country is not going to be able to move forward and create the growth that it needs to put money in people's pockets".

He also warned Chancellor Rachel Reeves's decision to hit employers with increased National Insurance contributions had resulted in supply chain job losses.

The Tory said: "People in Government do not appreciate the fact that raising National Insurance is not some sort of free tap of money they can turn on as and when they need it. It has an impact on jobs.

"Businesses realise that taking on somebody is going to cost them even more." His concerns were shared by Shadow