A coalition of manufacturers, investors, and climate groups have called on the Chancellor to slash electricity prices to unlock growth, drive electrification, and secure Britain’s place in the global clean economy.
In a joint letter to Chancellor Rachel Reeves, E3G and a range of major industry and climate leaders across the industrial supply chain have urged the UK government to move policy costs off electricity prices and into general taxation. This would cut business energy costs by up to 15% and household bills by up to £370 per year.1
The call comes as high electricity prices continue to undermine UK competitiveness, with businesses paying significantly more for electricity than their European counterparts, some of whom have already removed policy costs from electricity bills.
By moving policy costs into general taxation, the government can recover costs more progressively, with these charges disproportionately impacting electricity users, including low-income households and businesses that are struggling to compete internationally.
This change would also strongly align with the government’s growth mission by improving UK industry’s global competitiveness and freeing up capital for investment in energy efficiency and low carbon technologies. Signatories warn that failure to act now could see Britain miss out on a global clean manufacturing market projected to reach $2.6 trillion by 2030.2
Read the full joint letter to Chancellor Rachel Reeves here.
