Government mulls support for energy-intensive industries

The government is considering a plan to provide more help to energy-intensive industries in the face of soaring electricity prices.

British manufacturers are the lifeblood of our economy and are central to our plans to overcome this period of economic uncertainty, Kwasi Kwarteng said.

With global energy prices at record highs, it is important to look at what we can do to create a competitive future for those strategic industries. The government will hold a consultation on proposals that would remove the obligation to pay certain environmental and policy costs.

The consultation will give some much-needed relief in the face of extremely challenging circumstances, according to the director-general of UK Steel Gareth Stace. Support for these sectors is already in place. The Energy Intensive Industries Exemption Scheme grants firms 85% relief on a range of environmental and policy levies that are added to electricity bills.

The Department for Business, Energy and Industrial Strategy Beis said that UK industrial electricity prices were higher than those in other countries, including in Europe, which could hamper investment, competition and commercial viability for UK firms if no action is taken.

Adding further support to industry would help around 300 businesses support 60,000 jobs in the UK's industrial heartlands, Beis said.