Sheffield’s manufacturers could see major energy savings as part of a new strategy aimed at cutting business costs and supporting growth.

Prime Minister Keir Starmer announced a new 10-year industrial plan which includes cheaper electricity for business by removing certain green levies.

This could see some firms could saving up to 25 per cent on energy bills.

Marie Tidball, Labour MP for Penistone and Stocksbridge, asked business secretary Jonathan Reynolds about his plan for Speciality Steel. | NA

placeholder image — Marie Tidball, Labour MP for Penistone and Stocksbridge, asked business secretary Jonathan Reynolds about his plan for Speciality Steel. | NA

Manufacturers in the UK currently pay some of the highest electricity prices in the developed world.

Green levies are added to energy bills to help pay for things like renewable energy projects and backup power supplies.

The Industrial Strategy includes:

A new British Industrial Competitiveness Scheme to reduce costs for manufacturers.
Expanded support for the most energy-intensive industries (like steel, glass, chemicals), increasing their energy discounts from 60 per cent to 90 per cent starting in 2026.
Steel and other heavy industries may see network charges cut by up to 90 per cent from 2026.
Businesses could save up to £40 per megawatt-hour under the new British Industrial Competitiveness Scheme starting in 2027.
The Government also plans to speed up energy grid connections, helping new Sheffield factories get up and running faster.

The changes could impact energy bills for more than 7,000 businesses, but it will take two years of consultation to decide which ones qualify and what exemptions will apply.

For Sheffield – home to energy-hungry industries like steel, glass and advanced manufacturing – it could mean millions in savings and greater confidence to invest, the government says.

Dr Marie Tidball, Member of Parliament for Penistone and Stocksbridge, welcomed the announcement, hailing it a “huge turning point for British industry.”

She said: “The Government’s announcement to slash energy prices for manufacturers in the new Industrial Strategy marks a decisive turning point for Britain’s economy.

“This decision makes clear the Government’s commitment to back our British industry in our heartlands.”

Electricity prices were a big concern for business owners in her constituency, she added.

“I have listened to industries across our communities, who tell me that costly electricity prices are the number one challenge they are facing.

“This will be particularly welcome news for our vital steel industry, steelworkers, and advanced manufacturers across our constituency.”

Referencing Liberty Speciality Steel in Stockbridge, she added: “I have been clear from day one that Speciality Steel is fundamental to our communities, and I will continue fighting for our site, our jobs, and the strategic capacity our site can offer.”

Jeffrey Kabel, chief transformation officer at Liberty Steel, said: “We’re pleased the Government’s Industrial Strategy has reaffirmed steel as a foundational industry in the UK economy and taken further measures to ensure globally competitive energy intensive industries.”

According to Kabel, these developments will bring gradual but meaningful benefits, helping to attract fresh private investment into the industry.

He added that he is looking forward to the upcoming steel strategy, hoping it will outline in more detail how steel can play a central role in driving economic growth and job creation across the UK.

“We welcome increased relief from electricity network charges for energy intensive industries, as the steel industry has called for, and emerging measures on fast-track grid connections for strategically important demand.

“These measures will lower barriers for steel to punch its full weight in supporting UK industry.”