energy costs are ‘anchor on ambition’ – Daily Business

CBI chief executive Rain Newton-Smith will today warn that high energy costs are eroding Britain’s competitiveness.

Ms Newton-Smith says they are an “anchor on ambition”, restricting the ability of companies to invest, and impacting on jobs.

She will call for government action, starting with the removal of policy costs from electricity bills.

Addressing her organisation’s National Business Dinner in London, she will say: “UK firms pay among the highest electricity bills in the world. Fifty per cent more than France or Germany, four times more than the US and Canada. There is not a business in this room untouched by that. 

“New survey data from UK businesses shows over the past three years, almost 90% of firms have seen their energy bills rise – a third by more than 50%.  

“Four in 10 tell us they are cutting back on investment as a result. This isn’t just a cost issue. It’s a jobs issue. An investment issue. A security issue. 

“Because how can UK business compete with one hand tied behind its back – and the other straining to keep the lights on? This is an anchor on our ambition. A crack in our economic security. And it must be fixed.

“Nowhere is that more urgent than our energy-intensive industries. From metals to chemicals, these are bedrock industries. Foundations of our economic security. But right now they are bearing the heaviest load. One minerals firm told us their UK energy bill is up to 450% higher than in the US. 

“These businesses are finding it harder and harder to stay in the UK. They can’t wait for the energy transition to finish. They need fair prices and targeted support to decarbonise now. 

“Across the economy, the message is clear – we cannot deliver economic security without action on energy. Without putting prosperity, once again, over politics.” 

Ms Newton-Smith will say energy competitiveness is the way to deliver economic security: “I know the energy transition has become controversial in some quarters. But this is not a choice between cheap energy and pursuing net zero. That is a false choice.  

“If economic security is our destination, then make no mistake: affordable, reliable, low-carbon energy is the road that gets us there. Using our own, independent, renewable resources to power our future. Free from volatile prices and hostile actors.  

“What we need now is a serious plan alongside the industrial strategy: to cut energy costs, to manage the shift from fossil fuels, to boost efficiency, storage and system flexibility.

“This government has already shown it can put prosperity over politics on the world stage. Well now it must do the same for energy at home. Because this isn’t about culture wars. It’s about common sense.”