This page was reviewed and updated on 23/06/25.
The UK government has unveiled its first Industrial Strategy in eight years, outlining a ten-year plan to cut energy costs, unlock investment, and accelerate economic growth in high-potential sectors.
Announced today (23 June), the Strategy is designed to remove key structural barriers facing British Industry, specifically high electricity prices and long grid connection delays. The government claims the plan will unlock billions in private capital and support 1.1 million new jobs.
Cutting electricity costs for energy intensive industries
A central pillar of the strategy is the British Industrial Competitiveness Scheme, which will slash energy costs for more than 7,000 electricity-intensive businesses (particularly in manufacturing, automotive, aerospace, and chemicals) by up to 25% from 2027.
These firms will be exempt from environmental levies such as the Renewables Obligation, Feed-in Tariffs, and the Capacity Market. Further eligibility details will be set out in the forthcoming consultation. In parallel, the British Industry Supercharger will increase its discount on network charges for the most energy intensive sectors (like steel and glass) from 60% to 90% by 2026.
The moves aim to bring UK industrial electricity prices more in line with global competitors, easing pressure on manufacturers and helping retain and grow jobs in carbon-intensive sectors as they transition to net zero.
Accelerating grid connections
To reduce long wait times for connecting new sites to the electricity grid, a Connections Accelerator Service will be launched by the end of 2025. This aims to prioritise economically significant projects and may benefit from new legal powers currently being debated in parliament.
The government has also committed to exploring reforms that reserve grid capacity for strategically important sectors, such as clean energy, advanced manufacturing, and digital technologies
Broader plans for growth
The Industrial Strategy also outlines measures to:
- Increase British Business Bank funding to £25.6bn to support SME growth and innovation
- Invest over £22bn annually in R&D by 2030, with sector-specific support for AI, clean energy, and advanced manufacturing
- Deliver £1.2bn per year in skills training by 2028–29, including new short courses in priority sectors
- Simplify regulation and planning to reduce developer and business burdens
- Enhance the role of the National Wealth Fund and regional support bodies to unlock investment across the UK
Of the Industrial Strategy, Prime Minister Keir Starmer 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 Energy Advice Hub updates its guide to government support for energy intensive industries regularly and reports any changes as they happen, so keep an eye on the site to stay informed.
