Focus on energy costs gets positive reception

GOVERNMENT plans to centre its industrial strategy on reductions in energy costs for businesses have received an initial welcome in the North East.

- GRAEME WHITFIELD

The plan, which could cut bills by up to 25% for thousands of businesses, has been hailed by Prime Minister Sir Keir Starmer as a “turning point for Britain's economy”.

It comes after the Government came under significant pressure from business groups, unions and companies to bring down energy costs for UK firms, while Nissan had warned energy costs were making its UK operations uncompetitive.

From 2027, a new British Industrial Competitiveness Scheme will cut costs for over 7,000 manufacturing firms by exempting them from levies on bills including the renewables obligation. Around 500 of the most energy-intensive firms, including in the steel industry, chemicals and glassmaking, will also see their network charges cut by increasing the British Industry Supercharger discount from 60% to 90%.

Other measures in the Industrial Strategy include plans to boost sectors where the North East is strong, including advanced manufacturing sector, life sciences, clean energy and the creative sector.

There will also be extra funding for research and development and skills, plus a new visa scheme to allow businesses to bring in top talent.