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Energy: Foreign Investment in UK

Asked by Gareth SnellLabour (Co-op)Department for Business and TradeTabled Answered 28 April 2026UIN 129208

The question

To ask the Secretary of State for Business and Trade, what assessment he has made of the potential impact of energy costs on the UK’s attractiveness for Foreign Direct Investment.

Answered by Chris McDonald

We understand the scale and depth of challenge that high industrial electricity prices present to businesses. This is why we are addressing wholesale and network costs through long‑term investment in clean, homegrown power to reduce exposure to volatile fossil fuel prices.

While most businesses are currently protected against recent prices spikes through long‑term energy contracts, the Government will remain agile and responsive. We are also providing longer-term support with initiatives such as the British Industrial Competitiveness Scheme to drive investment in our sectors most likely to grow.

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