Alongside the strategy, which will prioritize growth across more than 30 industrial sectors, ministers will launch a consultation on “the structure of industrial electricity prices” to help cut running costs for factories and other manufacturing businesses.
As part of the consultation, ministers are expected to consider recent proposals from industry lobbyists to exempt manufacturers from environmental and other taxes levied on electricity bills.
The Industrial Strategy will also set out a more immediate boost to government financial support for the most energy-intensive manufacturing sectors, the three people said.
Less than 400 businesses in sectors including steel, ceramics and chemicals currently receive a 60 percent rebate on energy bills under the so-called British Industry Supercharger.
According to one of the people briefed on the government’s plans, the number of businesses that could be eligible may double or triple. At the same time, the support available could increase to 80 to 90 percent.
“Government want to help people who run factories because they can see that energy costs are a real competitive disadvantage,” said one industry figure briefed on the plans, granted anonymity to share them. “Manufacturers are competing to win orders from businesses in France and Germany, where industrial energy prices are very low.”
