The government proposals, released on Friday, will also mean lower costs for businesses in the paper, ceramics and glass sectors. The plans will help around 300 businesses supporting 60,000 jobs, the Department for Business, Energy and Industrial Strategy (BEIS) said. The latest intervention follows further targeted government support for energy-intensive companies in April, and comes amid soaring gas and electricity costs and the prospect of a prolonged recession. If implemented, the support scheme will increase the exemption for businesses from certain environmental and policy costs from 85% to 100%. Business secretary Kwasi Kwarteng said: “British manufacturers are the lifeblood of our economy and central to our plans to get us through this period of economic uncertainty. “With global energy prices at record highs, it is important that we explore what more we can do to deliver a competitive future for these strategic industries so that we can reduce production costs and protect jobs across the UK ». BEIS said the scheme reflected the fact that UK companies faced higher industrial electricity prices than those in other European countries. Subscribe to Business Today Get ready for the business day – we’ll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. He added that higher prices could “impede investment, competition and commercial viability” of these companies. Gareth Stace, director general of industry body UK Steel, said the plans would provide relief in “extremely difficult circumstances”. In a statement, he added: “While difficulties remain, this announcement demonstrates that [the] The UK Government understands the challenges facing British industry and continues to support steelworkers and steel communities across the country.” The latest proposed subsidies come as crucial talks with the owner of the UK’s biggest steelmaker draw closer to the winner of the Conservative leadership contest – either Rishi Sunak or Liz Truss. India’s Tata group, which owns Port Talbot in south Wales, is in talks with the government about £1.5bn in subsidies to fund decarbonisation plans. But talks stalled after the prime minister, Boris Johnson, decided not to make major financial commitments before a new Tory party leader takes office in September. If the front-runner, Truss, is successful, Kwarteng is tipped to be in the running for the chancellorship and is understood to value the steel industry as a major pillar of the British economy. The steel industry contributed £2 billion to the UK economy in 2020, according to a House of Commons briefing paper.
