Andy Burnham must cut business energy costs as a “day-one priority” to help turbo-charge growth, top industry bosses have said.
The incoming PM is under pressure to take immediate action to unlock an additional £130billion in economic activity by 2050, a study says.
Andy Burnham must cut business energy costs as a ‘day-one priority’ to help turbo-charge growth, top industry bosses have said Credit: PA
Business chiefs also say high energy costs are an anchor weighing on UK productivity Credit: Alamy
The push comes as electricity prices are 45 per cent above the G7 median, which is putting UK firms at a competitive disadvantage.
The Confederation of British Industry and Energy UK teamed up to develop a blueprint for an overhaul, getting feedback from firms including BT, Tesco and HSBC.
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The study calls for a three-pronged action made up of cutting electricity prices with tariff removal, reforms to the energy system and support for business electrification, which could include more electric vehicle use.
Louise Hellem, from the CBI, said: “If we want to tackle the cost of living and invest in public services, we need stronger economic growth, and that can’t happen while firms are navigating sky-high energy bills.”
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The study shows 2.7million firms, making up 90 per cent of non-domestic electricity consumption, are facing hikes in their costs.
Business chiefs also say high energy costs are an anchor weighing on UK productivity. Four in ten firms are even cutting investment due to high costs.
Dhara Vyas, the chief executive of Energy UK, said: “The UK cannot afford to let high energy costs continue to damage business investment, reduce our international competitiveness, and worsen the cost-of-living crisis.”
BRIT STEEL COMPO CALL
Chinese steelmaker Jingye has called for compensation after the Government took control of British Steel.
The company accused ministers of taking extreme action, warning full nationalisation would amount to “expropriation”. Britain took operational control of the struggling business last year.
Sir Keir Starmer later announced plans that could lead to full nationalisation.
Jingye claims it poured substantial sums into equipment and protecting jobs and vowed to recover its investment “without compromise”.
£37M A.I. LIFT
British technology company Valarian has secured another £37million in funding, giving Britain’s drive for home-grown artificial intelligence a major lift.
The investment, led by US venture capital giant New Enterprise Associates, will speed up the roll-out of digital systems for government, defence and businesses.
Boss Max Buchan said the cash would ensure crucial technology is built in Britain.
FIGHT & FLIGHTS
Heathrow suffered a fall in passenger numbers last month as conflict in the Middle East continued to disrupt travel.
The airport had 7.2million passengers, down from 7.4million in the same month last year. However, two million passengers flew to North America — where the World Cup is being held — up 1.2 per cent on June last year. Boss Thomas Woldbye urged ministers to back Heathrow’s expansion.
