FIRMS will be spared billions in green levies as Sir Keir Starmer bows to warnings net zero costs are pricing British industry out.
The PM will today unveil a ten-year Industrial Strategy that slashes electricity bills for more than 7,000 energy-intensive businesses.
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Manufacturers in sectors like steel, chemicals and automotive will be exempt from green taxes that have helped drive UK power prices to some of the highest in Europe.
The changes – coming in from 2027 – will knock up to £40 per megawatt hour off energy costs, cutting some firms’ bills by up to 25 per cent.
Sir Keir hailed the plan as “a turning point for Britain’s economy and a clear break from the short-termism and sticking plasters of the past”.
He said: “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.”
The move follows warnings from industry bosses that spiralling costs were driving investment abroad and threatening thousands of jobs.
Officials insist the price cuts won’t cost taxpayers a penny – with funding coming from reforms to the energy system and new revenue raised by linking the UK’s carbon pricing scheme to the EU’s.
Chancellor Rachel Reeves said the plan would “ease energy costs”, “upskill the nation” and “put more money in people’s pockets”.
A second scheme – the British Industry Supercharger – will boost discounts on network charges from 60 per cent to 90 per cent for the most energy-hungry firms starting in 2026.
Ministers also pledged to speed up grid access for new investment projects under a separate Connections Accelerator – part of the wider strategy – which will go live in 2025.
Energy Secretary Ed Miliband said British industry had been “held back” for too long by soaring bills and “volatile” gas markets.
Business groups welcomed the announcement but urged the government to move fast.
CBI chief Rain Newton-Smith said the plan sent “a positive signal” but added the UK must keep “a laser-like and unwavering focus” on staying globally competitive.
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