The UK Government’s new Industrial Strategy, launched in June 2025, lays out a long-term vision to boost the nation’s economy and competitiveness. For businesses—especially those struggling with high energy costs—this strategy brings some real opportunities and much-needed relief.
Cutting Energy Costs for Industry
One of the biggest challenges for UK businesses, particularly energy-intensive industries, has been rising energy bills. So, what’s been announced?
The British Industrial Competitiveness Scheme aims to:
- Reduce electricity costs by up to 25% for over 7,000 energy-intensive firms across the UK by removing green levies from industrial electricity bills and aligning the UK emissions trading system with the EU’s.
- Increase network-charge discounts from 60% to 90% starting in 2026.
These measures should bring welcome relief, especially for large energy users, in what remains a very volatile market.
However, the devil’s in the details — and right now, those details are still missing. The exact path to achieve these savings hasn’t been fully mapped out yet. There’s likely to be a consultation period throughout the rest of 2025, with an official announcement on how businesses can access these savings expected in 2026.
It’s still unclear whether the savings will be automatic or if businesses will need to claim them. Since energy suppliers ultimately handle billing, it remains to be seen how easy or tricky it will be to prove eligibility.
My advice? Watch this space—but don’t count on receiving much benefit until 2027.
New Grant and Funding Opportunities
Alongside cutting energy costs, the Industrial Strategy introduces major new grant funds to help businesses invest in clean energy and modernize their operations.
Here are the key highlights:
- A £1 billion Clean Energy Supply Chain Fund, designed to support UK manufacturers and supply chains involved in clean energy sectors like offshore wind, hydrogen, and carbon capture.
- This fund is open to individual UK businesses, offering grants to help build and expand clean energy manufacturing capacity.
- Additional funding, such as £700 million for Great British Energy, will support large-scale clean energy projects and infrastructure.
Businesses can expect grant rounds and application windows to open in the coming months, offering valuable opportunities to secure funding for energy-efficient upgrades, new technology, and growth projects.
So, What Should Businesses Do Now?
- Prepare for the British Industrial Competitiveness Scheme: Energy-intensive businesses should keep an eye out for announcements from the government. If you want, you can also talk to us at Leyton—we’ll keep you updated on any important news.
- Consider long-term energy planning: While you can’t control energy prices, you can plan to use less. Having a long-term energy plan is key. At Leyton, we offer carbon reduction planning services and would be happy to chat about how we can help your business.
- Explore grant opportunities: If you’re a manufacturer or supplier in clean energy, watch for updates from Great British Energy and related bodies so you can apply for grants from the Clean Energy Supply Chain Fund. Funding opportunities are out there, but they can be tricky to unlock. If your business is planning a carbon reduction project, reach out to us—we can help identify potential funding options.
If you want a hand navigating these new schemes or applying for grants, don’t hesitate to get in touch!
