No new money to help reduce the energy costs of UK companies in the expenditure examination
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The ministers did not accept a plan to reduce the high energy costs of Great Britain before examining the expenses of Chancellors Rachel Reeves, leaving a question mark on the final form of a policy which is at the top of the list of priorities for business groups.
Jonathan Reynolds, business secretary, still plans to reduce energy costs for the eight priority “growth” sectors identified in the new industrial policy of the government, which must be set out later this month.
But the structure of such a regime has not been agreed, while the examination of the expenses of Reeves has not allocated funding to pay for this, which means that money can be sculpted other budgets.
“We did not go as far as we would have liked,” admitted an informed person of the discussions. “Things are always very live. There is not much money and everything must bow to the eight priority growth sectors. ”
The industrial strategy will focus on advanced manufacturing, clean energy industries, creative industries, defense, digital technology and technologies, financial services, life sciences and professional and commercial services.
Reynolds welcomed the confirmation by Reeves of 86 billion pounds sterling in government investment in four years research and development, most or most will be targeted in the eight growth sectors.
Reynolds also said that the Allies have been satisfied with many aspects of the review of Reeves spending, including its 2 billion pounds sterling to support an artificial intelligence action plan and an annual increase of 1.2 billion pounds sterling in the skills budget.
The budget of its department will increase by an annual average of 5.8% in real terms until the end of the Parliament, one of the most generous colonies in Whitehall.
But when it comes to reducing the very high energy costs of Great Britain – considered by companies as the largest unique trail of their competitiveness – the Treasury has not signed a program to reduce bills.
Make UK, the manufacturing lobbies group, said that industrial energy costs in Britain were four times higher than those in the United States and 46% above the global average. “The next industrial strategy will be fatally wrong unless the high energy costs in the sky are discussed,” he said.
The ministers are considering various options, but Reynolds is said by people close to negotiations to want to focus aid on the eight “growth sectors”, who do not include large energy users such as steel and ceramics.
These two sectors already receive support from the British industry compressor program, which was created by the last conservative government. Reynolds also wants to help other sectors, including the automotive industry, said people had informed discussions.
Reynolds is a close ally of Reeves and has bypassed some of the cabinet’s battles for money in the expenses. His department was one of the first to settle his budget, but with the problem of unresolved industrial energy cost.
Treasury documents show that the regulations of the business department have 3 billion sterling books for the advanced manufacturing sector to help you with the zero -emission vehicle battery supply chain and ultra low carbon emission planes.
It also includes 2.9 billion sterling pounds for the British Business Bank, increasing its financing capacity for small businesses to 25.6 billion pounds sterling.
