High energy costs are one of the biggest barriers to growth facing UK businesses. While firms across the economy continue to grapple with rising labour and operating costs, electricity prices remain a particular challenge, with UK businesses paying around 45% more for electricity than the G7 median. 

The CBI and Energy UK have published Cutting Business Energy Costs: A Blueprint to Boost Growth , setting out a comprehensive strategy to reduce electricity costs, support business electrification and strengthen the UK’s competitiveness.

The report argues that tackling business energy costs must be viewed as a central component of economic and industrial policy, not simply an energy issue. Analysis undertaken with Cornwall Insight and National Institute for Economic and Social Research (NIESR) suggests that removing key policy costs and taxes from business electricity bills could generate more than £130bn of additional economic output by 2050, while also boosting private investment and tax revenues.

The report sets out a package of recommendations designed to deliver immediate relief while supporting long-term reform of the energy system.

If implemented in full, it is estimated that these recommendations can unlock an additional £130bn in economic activity between 2027 and 2050:

A key feature of the report is its analysis of seven different business energy archetypes, developed with Cornwall Insight and informed by businesses across the economy. The research highlights significant differences in how firms consume energy and demonstrates why a one-size-fits-all approach to policy is unlikely to be effective.

The findings show that while targeted support schemes such as the British Industry Supercharger and British Industrial Competitiveness Scheme provide important relief for eligible firms, many UK businesses remain exposed to rising electricity costs.

With high electricity prices continuing to constrain investment across the economy, the CBI and Energy UK are calling on the new incoming Prime Minister and government to work with industry to implement the recommendations set out in the report and deliver a more competitive, resilient and growth-oriented energy system.