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Defence: Manufacturing Industries

Asked by Alex BallingerLabourDepartment for Energy Security and Net ZeroTabled Answered 8 July 2025UIN 63748

The question

To ask the Secretary of State for Energy Security and Net Zero, whether he has made an assessment of the potential merits of providing support with energy costs to defence manufacturers engaged in energy-intensive steel casting.

Answered by Sarah Jones

For Energy Intensive Industries overall, our Clean Power 2030 target is the key to long-term sustainable price reductions. From 2027, the new British Industrial Competitiveness Scheme will reduce electricity costs by up to £40 per megawatt hour for over 7,000 electricity-intensive businesses in manufacturing sectors. Eligibility will be determined following consultation, which will open shortly, with a review point in 2030. The government is also increasing support through an uplift for our most energy-intensive industries eligible for the British Industry Supercharger, with an uplift of the Network Charging Compensation (NCC) scheme to 90% from 2026. The government will set out further details on its plans to decarbonise industry, in its Carbon Budget and Growth Delivery Plan in October.

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