Government to cut electricity bills for thousands of UK businesses by 25%
Over 7,000 British businesses will see their electricity bills slashed by up to 25%, alongside increased support for access to finance for high-potential firms.
Business and Trade Secretary Peter Kyle is set to make the announcement in a keynote speech to a room of bosses from some of the UK’s top firms at the CBI Conference in London on Monday (24 November).
He will announce the launch of an eight-week consultation for the British Industrial Competitiveness Scheme (BICS) that will determine eligibility and deliver one of the key promises in the government’s modern Industrial Strategy.
The scheme will cut energy prices for thousands of businesses, from April 2027, in high-growth industries like automotive and aerospace, and foundational sectors in their supply chains, like chemicals. British industrial electricity prices are currently some of the highest in the G7, making it harder for British firms to compete on the global stage.
He will also address another major concern among bosses who struggle to secure access to finance in order to grow and scale up their business. The Business Secretary will today back a new five-year plan for the Government-owned British Business Bank, ensuring it can invest larger amounts in successful domestic scale-ups, who currently have to look overseas for finance.
This will increase the Bank’s pace of investment by two-thirds, with a £4 billion boost for the most promising businesses in Industrial Strategy sectors to scale up and stay here. Over five years, the Bank’s total activities are projected to support 180,000 UK businesses, 370,000 new jobs, and add £68 billion of gross value added to the UK. economy.
“In recent years, our most promising innovators and industries have been hamstrung by some of the highest electricity prices in the G7 and poor access to finance. That’s been a drag anchor on growth. A drag anchor on innovation,” said Business and Trade Secretary Peter Kyle.
“I have listened to business on both these issues, and today we’re taking action. This is just the start, and in the months ahead I will be going further to address business concerns, reverse our industrial decline, and make the UK the best place to start and scale a business.”
High energy prices have consistently been raised as one of the top issues for businesses. 65% of respondents in Make UK and PWC’s 2025 energy survey said high energy costs reduce their ability to compete and that it is a ‘dominant concern for manufacturers’, whilst 64% of businesses in the latest business confidence survey from the Adam Smith Institute said high energy costs are a ‘major concern’.
