Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of energy costs on economic growth in energy-intensive manufacturing sectors.

We know high energy costs is one of the greatest challenges facing energy intensive manufacturing sectors, and is one of the key barriers to growth in the UK.

As part of the Modern Industrial Strategy, the Government has announced a series of measures to reduce industrial energy costs. This includes the creation of the British Industrial Competitiveness Scheme, which will reduce electricity costs by c.£35-40/MWh and exempt more than 10,000 electricity intensive manufacturers from the indirect cost of the Renewables Obligation, Feed-In Tariffs and Capacity Market schemes from April 2027.

Alongside this, the Government has also increased support available through the British Industry Supercharger by increasing Network Charge Compensation from 60% to 90% from April this year. Around 500 of the UK's most energy-intensive businesses benefit from the scheme, which is expected to reduce their electricity costs by up to £420 million per year.