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Government cuts electricity bill for 10,000 manufacturers

ended 16. April 2026

The Chancellor Rachel Reeves today confirmed electricity bill cuts for over 10,000 manufacturers.

The final design of the British Industrial Competitiveness Scheme (BICS), first announced in last year’s Modern Industrial Strategy, means the scheme will be expanded to cover an extra 3,000 businesses.

Automotive and aerospace, steel, and pharmaceuticals are among the sectors where eligible businesses are to benefit from a one-off additional payment in 2027. This will cover the support firms would have received if BICS had been in place from April 2026.

Eligibility has also been expanded by 40%, from 7,000 to over 10,000 businesses. This targets support at energy-intensive firms on the number one issue they face – high electricity costs.

The announcement comes as the Chancellor is in Washington to set out Britain’s plan for economic security through the Middle East crisis.

Chancellor of the Exchequer Rachel Reeves said: "This Government has the right plan for the economy: backing British industry, cutting electricity costs, and building a stronger, more resilient future.

“Today’s announcement will cut energy bills for over 10,000 manufacturers, helping businesses to compete, win and create good jobs across the country, and to deliver our modern Industrial Strategy.”

  • What is your reaction to the measure by the government?
  • Is it a sticking plaster on a broken bone?
  • What other thoughts do you have?

Responses this morning.

2 responses from the Newspage community

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Editor
Harry Goodliffe
Director at HTG Mortgages
Energy bill cuts for industry are clearly targeted to help, but far from a cure. This is clearly welcome for energy-intensive sectors that have been hammered by high electricity costs, it buys some breathing space and helps UK firms stay competitive in the short term. But it still feels like a bit of a quick fix. A one-off payment and targeted relief don’t fix the underlying problem that UK industrial energy costs remain fundamentally high compared to other countries.
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Colette Mason
AI Ethics Consultant at Clever Clogs AI
Call it what it is: a policy for the shortlisted few, dressed as wide support for "British business." The café, the accountancy practice, the plumbing firm, the hairdresser, the independent retailer? None of them are in eligible SIC codes. Small business electricity prices doubled between 2021 and 2023, from 16.5p to 31.9p per kWh, according to government data. Nobody is exempting them from anything.

The Treasury says there will be "changes within the energy system and Exchequer funding" with details in Budget 2026. Translation: either general taxation picks up the tab, or someone else on the grid does. There will be no sweetener. The government assures us households and non-eligible firms will see no bill increase. I'll believe that when I see the Impact Assessment in Autumn 2026, not before.

It's nice to offer a sticking plaster to some firms, but there are others slowly bleeding to death as their profitability is slashed.