The UK Government has unveiled its long-anticipated Industrial Strategy 2025, signalling a landmark shift in support for key industries and placing a renewed focus on competitiveness, growth and clean energy. For high-energy using businesses across manufacturing, chemicals, metals and beyond, the new strategy offers substantial opportunities to cut costs and future-proof operations. Here’s what you need to know.
Major reductions in industrial energy bills
One of the most impactful components of the strategy is the direct intervention to reduce energy costs for energy-intensive sectors. Through the newly announced British Industrial Competitiveness Scheme, over 7,000 businesses will benefit from significant electricity bill reductions starting in 2027. This includes:
- Reductions of around £40/MWh, potentially cutting electricity bills by up to 25%
- Exemptions from green levies, standing charges and other surcharges
- Costs reallocated to general taxation, levelling the playing field with European competitors
These measures are a welcome shift for UK industry, where electricity prices remain among the highest in Europe.
Support for eight strategic sectors
The strategy outlines focused plans for eight key industries, including advanced manufacturing, clean energy, defence, digital tech, creative industries, financial services, life sciences, and aerospace. These sector plans are designed to unlock private investment, boost exports and support regional clusters across the UK.
For high-energy users, this means increased policy alignment and visibility, which is critical for long-term capital planning.
Infrastructure and network readiness
The Government is also committed to improving access to the electricity grid. Long wait times for industrial connections have held back investment, so planned improvements will focus on expanding capacity, speeding up access and aligning grid development with industrial needs.
This is an essential step to enabling electrification and the broader energy transition for high-usage sites.
Investment, growth and innovation
The strategy is expected to:
- Unlock billions in investment over the coming decade
- Support up to 1.1 million skilled jobs
- Increase funding for the British Business Bank by two-thirds, with a focus on supporting SMEs and scale-ups
This creates a stable policy environment that rewards innovation and growth in sectors that have often struggled with cost and regulatory pressure.
Clean energy and net zero
Aligned with the upcoming Great British Energy Act 2025, the strategy supports a stronger, greener energy market through:
- Creation of Great British Energy, a publicly-owned renewable energy champion
- Investment in offshore wind, nuclear (Sizewell C), hydrogen and carbon capture (CCUS)
- A continued commitment to net-zero targets while securing energy supply
What this means for our clients
As specialists in energy procurement for high-usage businesses, we are uniquely positioned to help clients:
- Access and capitalise on new subsidies and market reforms
- Optimise purchasing strategies based on future tariff structures
- Navigate grid infrastructure planning and connection opportunities
- Forecast costs and opportunities linked to clean energy expansion
This is a significant moment for UK industry. If you operate in a high-energy sector, now is the time to act.
Get in touch with Red Hawk Group to learn how we can help you reduce costs and stay ahead in this new energy landscape.
✉️ billy@redhawkgroup.co.uk
🔗 www.redhawkgroup.co.uk
