As part of the Government’s long-awaited Industrial Strategy, the Prime Minister is to cut power bills by up to 25% for some 7,000 “electricity intensive” manufacturers, including car makers, aircraft factories and chemical plants.
From 2027, they will no longer have to pay the Net Zero levies that are normally added to their power bills, such as the renewables obligation, the feed-in-tariff and capacity market charges.
This will be paid for by financial reforms to the energy market and a raid on companies that burn natural gas, through higher carbon taxes, the Government said.
However, the support was at risk of being diluted on Sunday as Iran’s threat to cut off a vital oil and gas supply route in the Middle East risked sending energy prices around the globe soaring.
It comes after repeated warnings that British manufacturers are labouring under the highest industrial electricity prices of any developed country, with output down by a third since 2021.
Sir Keir’s announcement was welcomed by manufacturers, including Derby-based Rolls Royce, as a “giant and much needed step forward”.
The Prime Minister said: “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.
“Our message is clear – Britain is back and open for business.”...<<<Read More>>>...
