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Agriculture: Energy

Asked by Gareth SnellLabour (Co-op)Department for Business and TradeTabled Answered 20 May 2026UIN 176

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 business investment in the agricultural sector.

Answered by Chris McDonald

The Government recognises that energy costs are a significant factor influencing business investment decisions, including in the agricultural sector. We understand the challenges 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.

The Competition and Markets Authority (CMA) have put the industry on notice that they are monitoring fuel prices closely, including red diesel which is used in agriculture, and will not hesitate to take action if companies are found to have breached consumer protection law.

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