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Energy Intensive Industries: Capital Investment

Asked by Sarah PochinReform UKDepartment for Business and TradeTabled Answered 21 May 2026UIN 1621

The question

To ask the Secretary of State for Business and Trade, what assessment he has made of the potential impact of tax, regulatory and carbon‑related costs on the long‑term capital investment in energy‑intensive manufacturing.

Answered by Chris McDonald

Carbon-related costs deliver long-term investment signals to deliver energy security for UK businesses and reduce dependence on volatile fossil fuels. However, we understand that some energy-intensive industries (EII) are facing high industrial electricity costs affecting their competitiveness, which is why we deliver the British Industry Supercharger and EII Compensation Scheme to provide carbon-leakage prone businesses relief from carbon costs and electricity network charges. The Government keeps all policy measures, including tax, carbon costs and regulation, under review.

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