MORE than 7,000 manufacturing businesses will have up to 25 per cent cut from their electricity costs under the government’s 10-year industrial strategy.

Under a new British Industrial Competitiveness Scheme announced today, they will be exempted from levies on bills including the renewables obligation, feed-in tariffs and the capacity market from 2027 — reducing bills by up to £40 per megawatt hour.

Around 500 of the most energy-intensive firms, including the steel industry, will also see their network charges cut with bigger energy discounts, along with measures to speed up the time it can take to connect new factories and projects to the energy grid.

Prime Minister SIr Keir Starmer said: “This industrial strategy marks a turning point for Britain’s economy and a clear break from the short-termism and sticking plasters of the past.”

TUC general secretary Paul Nowak said that it “offers a real chance to bring back good jobs back to towns and cities” across Britain but “there is no time to waste.”

He added that the TUC strongly supports the launch of the Clean Energy Sector Plan, since “by prioritising sectors like nuclear fusion, nuclear fission and offshore wind, the government is showing a serious commitment to a balanced, resilient energy mix.”

Unite general secretary Sharon Graham welcomed the moves to cut energy costs, but said: “Unite would like to have seen the government go further.

“Our energy system is broken beyond repair; it will never function in the interests of business and consumers until it is brought back into public ownership.

“That must start with the National Grid to ensure industry can get the power it needs when it needs it and is not left waiting forever for new connections.”

She stressed that the government’s jobs creation and skills plans “need to be real and effective,” raising concerns that the timescale for the implementation of the strategy is for 2027 and beyond.

Unison assistant general secretary Jon Richards warned that the switch to renewables comes with major challenges as the “workforce needs new skills to safeguard their jobs. That means proper investment in the right training.”

GMB general secretary Gary Smith welcomed the action on energy costs but added that “as ever, the devil will be in the detail.”