The head of the Confederation of British Industry (CBI) is calling on the Government to tackle rising energy costs, warning they are undermining UK competitiveness.
Speaking at the CBI’s business dinner, chief executive Rain Newton-Smith will say that surging power bills, combined with tax and wage hikes, are costing UK firms an extra £24 billion annually.
She will describe high energy prices as “an anchor on our ambition” and argue that without action, any long-term industrial strategy is at risk.
Nearly 90% of UK businesses have faced rising energy costs over the past three years, with a third reporting increases of over 50%, the CBI said.
Four in ten companies are cutting investment due to mounting costs. The CBI wants policy costs removed from electricity bills and is urging a clear plan to expand low-carbon energy, boost efficiency and ensure price stability.
Newton-Smith will warn that UK firms now pay far more for electricity than rivals in the US, Canada, France or Germany.