British business prime minister Sir Keir Starmer has been warned that his ego-protected industrial strategy will be published this month will be "fatal flawed" unless it fully deals with the country's very high energy costs.
Ministers believe high energy costs – 46% higher than the global average as claimed by manufacturers – must be addressed in industrial strategies, government officials said.
But business groups fear the government will be too timid and help only the most energy-intensive sectors, such as steel and ceramics, rather than the various companies struggling to get electricity bills.
According to People Brief, ministers want to increase the generosity of the British Industry Supercharger program established by Rishi Sunak's Conservative Government in April 2024, which cuts costs for 370 energy-intensive companies.
"Unless the industrial strategy provides a solution to the high energy costs of the UK for industry, it will fail," Rain Newton-Smith, Director General of the CBI Employers Federation, told the Financial Times.
Newton-Smith said a "more comprehensive" solution must be found, not just focusing on the largest energy users, adding that the chemical, aerospace and automotive industries are the people who are the biggest billed by Core.
Meanwhile, manufacturing hall group Make UK said the cost of industrial energy in the UK is four times that of industrial energy in the US and 46% higher than the global average.
"Unless the cost of altitude energy is addressed, the upcoming industrial strategy will be a fatal flaw," it said.
Starmer's industrial strategy is prioritizing eight "growth" areas: advanced manufacturing, clean energy, creative industries, defense, digital and technology, financial services, life sciences, and professional and commercial services.
Officials close to Business Secretary Jonathan Reynolds said: “Johnny said energy always comes.
Industry officials briefly describe government thinking ministers take a more generous approach to the UK industry superchargers, and Sunak's government said the industry will save energy-intensive users, such as steel manufacturers, about £410 million in 2025.
Ministers are considering increasing network charges for eligible companies from 60% to close to 90% of compensation offered by industrial users of these network fees, they said.
However, business groups want to reduce the allocation of energy costs more broadly, including taxes such as “renewable energy obligations” and “climate change taxes” in bills.
“If we don’t prioritize the issue of high industrial energy costs, then we have the risk of national security,” Stephen Phipson, the UK CEO, said.
“The energy cost at the Nissan Sunderland manufacturing plant is the highest energy cost for all Nissan cars around the world,” said Alan Johnson, senior vice president of Nissan, a Japanese automaker.
The industrial strategy will be published on June 11 during the U.S. Treasury Department's comprehensive spending review.
The Ministry of Commerce and Trade declined to comment on “guess” about the content of the strategy.