Plans to lower energy costs for thousands of businesses by exempting them from some green energy levies have been set out as part of the Government’s new 10-year industrial strategy.
The measures, which could slash energy bills by up to 25% for more than 7,000 UK businesses, have been unveiled alongside other plans aimed at boosting growth.
Under the industrial strategy for 2025 to 2035, the Government has said it plans to cut the bills of electricity-intensive manufacturers in named sectors by up to £40 per megawatt hour – up to 25% – from 2027, which could benefit more than 7,000 businesses.
The sectors are: advanced manufacturing, clean energy, creative industries, defence, digital and technologies, life sciences, professional and business services and financial services. 
However, retail and leisure sectors have not been included in the strategy despite many complaining of high energy bills and the rise in staffing costs.
The state-owned British Business Bank will expand to spur investment into smaller companies and provide an extra £1.2bn a year by 2028-29.
The Government also repeated its ambition to cut regulatory burdens, spend more on research and development and speed up the planning process.
The strategy also includes plans to improve UK workers’ skills with an extra £1.2bn of funding each year by 2028-29 and boosting research and development spending to £22.6bn per year by 2029-30 to drive innovation.
Shevaun Haviland, Director General of the British Chambers of Commerce, said: “The Industrial Strategy is an important milestone towards creating a competitive economy that is fit for the future, with thriving businesses in every region of the UK.
“From start-ups and SMEs to large corporates, firms need a stable environment that enables faster, easier and more certain investment decisions. This strategy is a welcome blueprint for policymakers and business to achieve this.
“Firms have sounded the alarm about uncompetitive energy bills for years. This is welcome support for electricity-intensive businesses that will ease long-term cost pressures.
“Access to a skilled workforce is vital to growth. Employers called for a more flexible Growth and Skills Levy and will be relieved that they can access shorter courses to upskill people in work from next April.
“Plans to improve access to finance – a major barrier for many SMEs – will enable more firms to start, scale and grow.
“We were pleased to convene business and Government across our Chamber network in recent months. Much of what we shared with policymakers, has been heard and reflected in this strategy. There’s more to do and we are ready to support the next steps.
“We encourage businesses to get behind this strategy and champion the UK as the best place to live, work, invest, and do business.”
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