Government action to supercharge competitiveness in key British industries and grow economy

Government activeness to supercharge competitiveness in primal British industries and grow economy

300 businesses across the United kingdom will benefit from the British Manufacture Supercharger: targeted measures to ensure the energy costs for key UK industries are in line with other major economies effectually the world

• The government announces the British Manufacture Supercharger: decisive measures to make Britain’due south strategic energy intensive industries more than competitive beyond Europe
• 300 companies – employing 400,000 skilled workers – in vital sectors including steel, metals, chemicals and paper ready to benefit
• Backing proves the Great britain’southward determination to secure a competitive future for these industries and long-term resilience of the Great britain economic system for global investment

300 businesses across the Uk will benefit from the British Industry Supercharger: targeted measures to ensure the energy costs for primal UK industries are in line with other major economies effectually the world – levelling the playing field for British companies across Europe.

The support will be made available to sectors particularly exposed to the cost of electricity, such as steel, metals, chemicals and paper. These industries employ effectually 400,000 skilled workers right across the Great britain, and support many more in their supply chains. In 2019 their exports made up effectually 28% of total Uk exports.

Proposed changes nether the Supercharger – set to be consulted on in the Spring – will exempt firms from the sure costs arising from renewable free energy obligations such as the Feed in Tariff, Contracts for Difference and the Renewables Obligation, too equally GB Capacity Market costs, whilst exploring reductions on network charges, which are the costs industrial users pay for their supply of electricity.

The measures announced past the Business concern and Trade Secretary Kemi Badenoch today (Thursday 23 February) will bring the energy costs of the UK’s free energy intensive industries in line with those charged across the world’s major economies. This is crucial to helping these businesses remain internationally competitive, and will enhance the Britain’southward bewitchery as a destination for international investment as well as remove barriers to movement us further towards greener engineering as part of a sustainable net nil futurity.

Business organization and Trade Secretary Kemi Badenoch said:

“This is carefully crafted back up that volition mean strategically-important United kingdom industries like steel and chemicals remain competitive on the world stage.

“Nosotros will dorsum these businesses to keep on growing our economy and delivering high-quality jobs and investment into the UK, as well equally the products nosotros rely on for our everyday lives and work.”

Energy Security Secretary Grant Shapps said:

“Putin’s weaponization of energy has shown how secure and affordable energy is vital to all parts of our economy – especially central sectors like steel and chemicals.

“Today’southward measures will help deliver the affordable, reliable energy that these industries need to get greener, and secure jobs for the futurity.”

The delivery mechanisms and timelines for implementation of the British Industry Supercharger will be consulted on in the Spring, with an expectation that they’ll be rolled out from Spring 2024 onwards.

Information technology builds on the Energy Security Strategy, published concluding year, which committed government to taking action to address the United kingdom of great britain and northern ireland’due south industrial electricity prices, which are college than those of other comparable countries.

Backing these companies is critically important to the wider economic system, every bit many of them provide products that other businesses cannot easily substitute, and which their supply chains depend upon.

It will also form a central function of the government’s wider plans to seize on the potential of new green industries like electric vehicle and bombardment manufacturing, where the United kingdom of great britain and northern ireland is already a pioneer. These businesses have high free energy requirements, and this back up will mean the UK is well-placed to seize on the potential for these industries to abound.

Gareth Stace, Director Full general of UK Steel, said:

“UK industrial electricity prices take been uncompetitive for many years, and today, the government took a slap-up step towards levelling the playing field for the steel industry. We welcome this annunciation and await forward to working with government to ensure total price parity with European competitors. It is essential nosotros tin can compete on an equal footing, in the short term, within the fiercely competitive steel market, both in Europe and globally.”

Dave Dalton, the chair of the Free energy Intensive Users Group, said:

“We welcome today’s declaration with the measures to reduce electricity prices for energy intensive industries. These measures will bring our industrial electricity prices more than in line with those in other countries and assist the competitiveness and decarbonisation of energy intensive industries in the UK.”

The government recognises that businesses of all kinds are feeling the touch on of loftier global energy prices, which is why nosotros announced the Energy Beak Relief Scheme to bring down costs, and will continue support from 1 April 2023 until 31 March 2024 through the Free energy Bills Discount Scheme (EBDS).

From:

Section for Business organization and Merchandise
Section for Energy Security and Internet Goose egg
The Rt Hon Kemi Badenoch MP
The Rt Hon Grant Shapps MP