Government announces energy cost cuts for over 700 businesses in the East of England
Businesses established in Bedfordshire and Hertfordshire are set to enjoy a 25% cut in energy bills
Over 700 businesses in the East of England are set to benefit from lower electricity bills under a new government scheme, aimed at boosting industrial growth and supporting thousands of jobs across the region.
The new Industrial Strategy, launched this week, sets out plans to reduce electricity costs by up to 25% for companies across the region, including over 7,000 energy-intensive firms in sectors such as automotive, aerospace and chemicals.
The support comes through the British Industrial Competitiveness Scheme, which will cut electricity prices by up to £40 per megawatt hour from 2027.
According to the Department for Business and Trade, these measures are expected to support more than 23,000 jobs in the East of England.
To address delays in grid connectivity that have affected business expansion plans, the government also announced a new Connections Accelerator Service.
The service aims to streamline grid access for major investment projects, prioritising those that deliver economic benefits and high-quality employment.
Industry Minister Sarah Jones said: “For too long businesses in the East of England have been held back from their full potential because of high electricity prices and delays connecting to the grid.
“Today we put the full backing of government behind business, tackling energy costs, fixing skills, and providing certainty through our modern Industrial Strategy.
“We are delivering our Plan for Change for businesses across the country backing firms to grow and putting money into the pockets of working people.”
The government has also committed to investing an additional £1.2 billion annually by 2028–29 in workforce skills, aiming to fill vacancies in growing sectors with secure, well-paid roles.
The Industrial Strategy outlines targeted support for key industries in the East of England:
- Technology and Research: £670 million will be directed toward quantum computing R&D, alongside £187 million for tech skills training and £2 billion to deliver the AI Opportunities Action Plan. Cambridge is highlighted as a major contributor, generating 18% of the UK’s tech value.
- Life Sciences: Measures include a fund of up to £520 million to support manufacturing investment, reforms to clinical trial approvals, and up to £600 million in partnership with the Wellcome Trust for a health data platform. The Oxford to Cambridge corridor is identified as a leading region for life sciences and AI in healthcare.
- Advanced Manufacturing: £4.3 billion in funding will support companies in the sector, with the East of England home to firms such as Bosch and Caterpillar, as well as new ventures in graphene and battery technologies. Plans include piloting autonomous taxis by spring 2026.
Specific regional investments outlined include:
- Sizewell C nuclear power station in Essex and Suffolk, with £14.2 billion in investment and an estimated 10,000 jobs created.
- A428 road upgrades to improve access to jobs in Cambridge and Milton Keynes.
- Support for the Cambridge Growth Company to invest in infrastructure and development.
- The East-West Rail project linking Oxford and Cambridge, expected to enable 100,000 new homes, support thousands of jobs, and contribute up to £6.7 billion annually to regional gross value added (GVA) by 2050.
The Industrial Strategy is part of the government’s wider Plan for Change, which aims to attract investment and support 1.1 million new jobs across the UK over the next ten years.