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Yahoo
15 hours ago
- Business
- Yahoo
UK manufacturing poised for funding boost to reduce energy costs
UK manufacturing is expected to receive support to ease energy costs and boost skills, the Guardian understands, as part of a long-awaited industrial strategy due to be unveiled next week. Energy-intensive industries have long complained that they pay too much for electricity compared with competitors in the EU, while the wider industrial sector has struggled to recruit skilled staff. As Nigel Farage's Reform party targets support in Britain's industrial heartlands, ministers are poised to pour funds into boosting the manufacturing workforce with proposals similar to a £600m package for the construction sector announced earlier this year, which underpins plans to build 1.5m homes. Ministers have drawn up plans to take aim at energy costs through two policies, one targeted at businesses that use the most electricity – such as steel and aluminium – and another designed to support manufacturing more broadly. Related: Trump threatens to keep 25% tariff on UK steel imports over Port Talbot concerns These are expected to be at the heart of the strategy, which could be announced as soon as Monday. First, the government will increase from 60% to 90% the 'network compensation charging' (NCC) scheme, a discount for energy-intensive businesses on the fees they pay to connect to the Grid. The discount, which is ultimately paid for by other electricity bill-payers including households, is available under the British Industry Supercharger initiative brought in by the previous government. Industry sources said increasing the discount would reduce costs for struggling steelmakers by about £6.50 per megawatt hour (MWh). This is expected to help big companies such as Tata and British Steel, which is under government control, manage the costly transition from blast furnaces to greener electric arc furnaces. However, industry sources said that, while the policy was welcome, the overall saving for the sector is only expected to be worth about £15m a year. Energy costs are likely to remain significantly higher than in Germany and France, chiefly because UK electricity prices are linked to the cost of wholesale gas, which is a larger part of the British energy mix than on the continent. Speaking at the Paris airshow this week, the business and energy minister, Sarah Jones, said: 'Whether you're a company wanting to invest in the UK or whether you're an existing company in the UK, energy prices is a challenge. The fact that we're not competitive with it, with Europe, is the challenge.' For smaller manufacturers, ministers will consult on a new 'intensity threshold' to provide relief. The scheme, which could be up and running as soon as 2027, is expected to work by analysing the ratio between a company's energy usage and its turnover, adjusting the support on offer accordingly. Make UK, the trade body for the sector, welcomed indications that companies are in line to receive the support they have long campaigned for. 'If we're going to move the dial in the industrial strategy we have to get manufacturers' eye-watering energy costs more in line with our competitors,,' said Stephen Phipson, chief executive of Make UK. 'This would be an incredibly welcome move for companies and provide a much-needed shot in the arm at a time when they are facing multiple challenges on all fronts. 'It would also give a vital kickstart to investment and help manufacturing support the government to deliver its growth mission to boost the economy.' The strategy is also likely to include greater powers for the state-owned British Business Bank to invest directly in businesses, particularly small and medium-sized startups. The department for business and trade declined to comment on the content of the industrial strategy. Ministers were expected to publish the industrial strategy earlier this year but the announcement was postponed as the government brought forward detailed plans for individual sectors. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Guardian
a day ago
- Business
- The Guardian
UK manufacturing set for a funding boost to reduce energy costs
UK manufacturing is expected to receive support to ease energy costs and boost skills, the Guardian understands, as part of a long-awaited industrial strategy due to be unveiled next week. Energy-intensive industries have long complained that they pay too much for electricity compared with competitors in the EU, while the wider industrial sector has struggled to recruit skilled staff. As Nigel Farage's Reform party targets support in Britain's industrial heartlands, ministers are poised to pour funds into boosting the manufacturing workforce with proposals similar to a £600m package for the construction sector announced earlier this year, which underpins plans to build 1.5m homes. Ministers have drawn up plans to target energy costs through two policies, one targeted at businesses that use the most electricity – such as steel and aluminium – and another designed to support manufacturing more broadly. These are expected to be at the heart of the strategy, which could be announced as soon as Monday. First, the government will increase from 60% to 90% the 'network compensation charging' (NCC) scheme, a discount for energy-intensive businesses on the fees they pay to connect to the Grid. The discount, which is ultimately paid for by other electricity bill-payers including households, is available under the British Industry Supercharger iniative brought in by the previous government. Industry sources said increasing the discount would reduce costs for struggling steelmakers by about £6.50 per megawatt hour (MWh). This is expected to help major firms such as Tata and British Steel, which is under government control, manage the costly transition from blast furnaces to greener electric arc furnaces. However, industry sources said that, while the policy was welcome, the overall saving for the sector is only expected to be worth about £15m a year. Energy costs are likely to remain significantly higher than in Germany and France, chiefly because UK electricity prices are linked to the cost of wholesale gas, which is a larger part of the British energy mix than on the continent. Speaking at the Paris airshow earlier this week, the business and energy minister, Sarah Jones, said: 'Whether you're a company wanting to invest in the UK or whether you're an existing company in the UK, energy prices is a challenge. The fact that we're not competitive with it, with Europe, is the challenge.' For smaller manufacturers, ministers will consult on a new 'intensity threshold' to provide relief. The scheme, which could be up and running as soon as 2027, is expected to work by analysing the ratio between a company's energy usage and its turnover, adjusting the support on offer accordingly. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Make UK, the trade body for the sector, welcomed indications that firms are in line to receive the support they have long campaigned for. 'If we're going to move the dial in the industrial strategy we have to get manufacturers' eye-watering energy costs more in line with our competitors,,' said Stephen Phipson, chief executive of Make UK. 'This would be an incredibly welcome move for companies and provide a much-needed shot in the arm at a time when they are facing multiple challenges on all fronts. 'It would also give a vital kickstart to investment and help manufacturing support the government to deliver its growth mission to boost the economy.' The strategy is also likely to include greater powers for the state-owned British Business Bank to invest directly in businesses, particularly small and medium-sized startups. The department for business and trade declined to comment on the content of the industrial strategy. Ministers were expected to publish the industrial strategy earlier this year but the announcement was postponed as the government brought forward detailed plans for individual sectors.
Irish Times
a day ago
- Politics
- Irish Times
A Nigel Farage-led UK goverment could herald a united Ireland
The election of Reform Party leader, Nigel Farage , as British prime minister after the next Westminster election would accelerate support for Irish unification and Scottish independence, former taoiseach Leo Varadkar has said. Speaking on the BBC's The View programme, shown on BBC Northern Ireland on Thursday night, Mr Varadkar praised British prime minister Keir Starmer 's attitudes towards Ireland since his election last year. 'Prime minister Starmer might be re-elected for a second term. It's equally possible – not probable – but possible, that Nigel Farage could be prime minister of the UK in four years' time, or in nine years' time,' said Mr Varadkar. 'That would change the picture,' he said, and change opinions about Irish unification among 'some people in the middle ground in Northern Ireland if in Westminster we had an English nationalist government'. READ MORE Mr Farage's party won hundreds of seats across England and Wales in May's local elections and frequently leads national opinion polls ahead of Labour and the Conservatives. Even the possibility of a Reform-led government in London strongly supports his contention that the Irish Government should be planning for Irish unification, even if it offered no view on when a referendum should be held, Mr Varadkar said. 'It makes sense to do a bit of horizon scanning, to do a bit of scenario planning, to think about some of those issues, even if it's a just-in-case,' he said. A Farage-led administration would 'double down on Brexit' because those who supported the UK's exit from the EU believed 'it wasn't done properly', the former Fine Gael leader and taoiseach said. 'What you'd see is an attempt to rescind many of the things that prime minister Starmer and his government have done to bring the United Kingdom even further away from the European Union,' he said. [ Explainer: what is Keir Starmer's Brexit reset deal? Opens in new window ] Mr Varadkar said he believed a Farage-led UK government would put Irish unification 'centre stage'. 'And it isn't just because a right-wing nationalist government in London would want to bring the UK and Northern Ireland away from Europe,' he said. Many conservative and populist attitudes pushed by Reform on social issues, such as gay rights, would not be liked by a majority of people in Northern Ireland, from both traditions, he said. '[They] have a liberal and European outlook, and if that's the kind of government they had in London versus a government in Dublin that was very different, it might make them more likely to vote yes to unification,' he said. Mr Varadkar said he hoped a Farage-led government would not happen, 'but I'm saying it could, and we should think about that'. If Farage succeeds, it will be because of English voters showing 'scant regard' for opinions in Northern Ireland and Scotland, he said. 'We've seen that happen before, and we saw it happen with Brexit. Could it happen in four to nine years? It could.' [ Rory Stewart: Britons' view of Ireland has gone from 'patronising superiority to complete ignorance' Opens in new window ] Since he stepped down as taoiseach, Mr Varadkar has repeatedly supported Irish unification, though he told the BBC programme that he had not begun planning for unity during his time in power because he was trying to secure an EU/UK deal. Unification is 'not inevitable' and must be worked towards, he said, but there are 'a lot of factors that would suggest that we're on that trajectory', especially recent polling showing that a majority of young people in Northern Ireland favour it, he said. 'I think that will carry through, and that's why I think it's something that we should plan for,' he said. 'I think it's something that shouldn't just be an aspiration; it's something that should be an objective of the Irish Government, and of Irish society.'
Sky News
a day ago
- Politics
- Sky News
Union memberships surge in Reform-controlled councils
The UK's largest trade union saw its membership jump by 200% in the 10 local authorities won by Reform at last month's local elections. Unison figures show its membership increased by an average of 272% in the week after the results were announced, which saw Reform take control of 10 councils and pick up more than 600 councillors. The data, shared with Sky News, shows an average of 64 people joined the union in the week beginning 5 May, following the poll in England on 1 May - compared with an average of 28 for the previous week and 21 for 2025 as a whole. In a speech celebrating his party's gains, Mr Farage warned workers at councils now controlled by Reform - including Durham, Kent, Doncaster and Staffordshire - to seek "alternative careers" if they worked on diversity or climate change initiatives. Mr Farage has sought to bring the Trump administration's so-called Department of Government Efficiency - nicknamed DOGE - to the UK in a bid to slash the costs of the state. He has singled out council spending and environmental policies for particular criticism. Spike in union membership After taking control of Durham council, Mr Farage said: "I would advise anybody who's working for Durham county council on climate change initiatives or diversity, equity and inclusion or … things that you go on working from home, I think you all better really be seeking alternative careers very, very quickly." Critics have pointed out that councils often do not have staff who work exclusively on either diversity or climate change, that attempting to fire people from local government roles tends to be time-consuming and costly for councils - and say his comments are simply political posturing. Shortly after Mr Farage's threat, Christina McAnea, Unison's general secretary urged workers at Reform controlled-councils to join her union. Ms McAnea told Sky News: "Membership has surged in areas where Reform did well in the local elections. 4:47 "Unions exist to ensure no one can play fast and loose with the law. Any staff working for councils now controlled by Reform, and who aren't already a UNISON member, should sign up so they can be protected too. "A party that has voted consistently against modest measures to improve working conditions and threatened to sack council workers at the earliest opportunity is not one working people are likely to trust." She added: "Reform has been keen to shout about its tax and benefits giveaways, but there's precious little on which cherished public services will be sacrificed to pay for them." Ms McAnea's plea to council workers comes amid a wider fightback within the trade union members against Mr Farage. Ahead of last month's local elections, Energy Secretary Ed Miliband accused Mr Farage of peddling "nonsense and lies" about net zero and that his agenda would not only risk "climate breakdown" but also "forfeit the clean energy jobs of the future" in Britain.
Telegraph
a day ago
- Politics
- Telegraph
Has Reform peaked?
A couple of days ago, I spotted Nigel Farage on the terrace of the House of Commons, enjoying a late afternoon drink in the sun with his fellow Reform MPs. I could hardly complain about his work ethic, as I should have been in the office myself. I saw him looking out across the Thames – content, relaxed, and surrounded by friends, all of whom agree with the bookies' suggestion that he is set to become our next Prime Minister. On top of the polls, on top of the world, the master of all he surveyed. And yet, only six weeks or so after Reform's triumph at the local elections, is the shine starting to come off Farage? A YouGov poll this week had the party down two points to 27 per cent, with Labour up one to 24 per cent. Reform's lead over Labour has halved in a single week. As relaxed as Farage seemed as he tucked into his pint, is he worried that his momentum is starting to stall? It's hardly been a peaceful month at Reform HQ. Just as the party was basking in its seizure of ten councils, two mayoralties, and the constituency of Runcorn and Helsby, Farage came under steady attack for his latest pie-in-the-sky policy package: scrapping the two-child limit and introducing a new transferable marriage tax allowance to his already costly plan to lift the income tax threshold to £20,000. Then we had Zia Yusuf's two-day resignation and his replacement as the party's chairman by self-styled paranormal expert Dr David Bull; a man who has claimed that 'immigration is the lifeblood of this country.' Endless in-fighting, ideological incoherence, a shallow policy platform: the general impression created by Reform is one of unseriousness. I bet Farage still can't believe his luck: a doubling of his party's vote share in a year, the implosion of the Tories (languishing on 17 per cent in that same YouGov poll), and an utterly useless Labour Government. Downing Street beckons. But if the last year has proven anything, it is how quickly political fortunes can change. One day you're cock of the walk, the next a feather duster. Could voters dump Farage just as quickly as they picked him up? Certainly. But one hesitates to write off Reform because of only one poll – especially as other pollsters have the party topping 30 per cent. The reasons for Farage's success are structural. Voters hated the Tories, and now they hate Labour for much of the same reasons. With both old parties discredited, why not take a punt on something different? It helps when that this new party is led by one of the best-known politicians in Britain – and one of the few with any credibility on the salient topic of immigration. A day after I spied Farage on the Commons terrace, I saw him again at a Tufton Street talk on the future of net zero. He was by turns charming, insightful and profound, especially when tracing climate extremism to a broader crisis of godlessness. Between calling for escalation in the Middle East, and pledging an end to the fracking ban, he seemed confident and unchanged. He will never become a statesman in the traditional mould. But it is always a pleasure to see him at work.
