UK to cut green levies on businesses in bid to reduce energy costs and boost manufacturing | Manufacturing sector

The government must reduce green levies over thousands of companies, with the aim of lowering energy costs from top to bottom for businesses and stimulating the manufacturing sector in labor work.

The measure is a key board of the long -awaited industrial strategy, a 10 -year plan to stimulate sectors ranging from creative manufacturing industries.

More than 7,000 companies could reduce their energy bills while the government removes withdrawals such as the obligation of renewable energies, which finances continuous commitments for renewable electricity production projects.

He will produce a parallel policy, reported in The Guardian last week, aimed at helping industries in particular with high electricity intensity such as the besieged steel sector.

This will involve increasing the costs on the costs that companies with high energy intensity pay to connect to the network at 90%, compared to 60%.

Industry sources told The Guardian last week that politics is welcome, the overall economy of steel should only be worth around 15 million pounds sterling per year.

However, discount should also help around 500 companies in other industries, including aluminum, ceramics and glass.

British manufacturers have long complained of having to struggle with some of the highest electricity prices in the developed world, as well as delays in connection to the grid, a particular concern in the technological sector.

New systems will be implemented for major investment projects that create a large number of jobs to have faster access, which should be in place before the end of the year.

Announcing the plan, Prime Minister Keir Starmer said that he hoped that it would be “a turning point for the British economy and a clear rupture of the short-term and plaster of the past.

“At a time of global economic instability, it offers certainty and long -term management that British companies need to invest, innovate and create good jobs that put more money in the pockets of people as part of the change plan.”

The Chancellor, Rachel Reeves, said that the strategy would complete the expenditure examination, which favors investment in infrastructure and industry. “He will see billions of pounds for advanced investments and technologies, will facilitate energy costs and increase the nation. This will ensure that the industries that make Great Britain can prosper, “she said. “This will stimulate our economy and create jobs that put more money in people’s pockets.”

The government has said that reforms would not directly cost the taxpayer anything or would lead to an increase in household bills, but would be funded by reforms of the energy system.

Energy costs should remain considerably higher than in Germany and France, mainly because the prices of electricity in the United Kingdom are linked to the cost of wholesale gas, which is a larger part of the British energy mixture than on the continent.

The key to the plan is the proposed connection to the trading system for the United Kingdom’s emissions with that of the EU, announced in May at a joint summit in London, although negotiations on the entrance to the United Kingdom on this carbon market are still not concluded.

Monday’s strategy should focus on eight sectors where the United Kingdom has rapid growth potential: advanced manufacturing, clean energy, creative industries, defense, digital, financial services, life sciences and professional services.

The Confederation of the Director General of British industry, Rain Newton-Smith, praised the strategy, saying that “competitive energy prices, accelerated planning decisions and support innovation will provide a basis for growth.

Stephen Phipson, the director general of the organization of manufacturers Make UK, said that the strategy was a “step forward giant and essential”, affirming that there has long been frustration in the sector during the skills crisis, paralyzing energy costs and difficulties in accessing capital.

“The strategy announced today provides plans to resolve these three structural defects,” he said. “It is clear that there is much to do to progress towards implementation, but that will send a message across the country and around the world that Great Britain is back in business.”