London officials rolled out a £600mn British Industrial Competitiveness Scheme to cut electricity costs for energy‑intensive manufacturers. By stripping green levies, the programme promises up to a 25% reduction in bills, with payments back‑dated to April 2026 and first disbursements in 2027. The expansion now covers 10,000 manufacturers, up from 7,000.

Business federations warned the aid would merely “scratch the surface” of the cost shock stemming from the Iran conflict. Make UK’s senior policy manager Patrick Matthewson argued the scheme’s limited reach leaves most of the 130,000 firms in the sector uncovered, raising doubts about funding sources that the Treasury will detail only in the autumn across the UK.

Labour‑aligned groups and the TUC pressed for a broader safety net, saying the plan must extend to brickworks, potteries and chemical plants to protect thousands of jobs. Chancellor Rachel Reeves, defending a tight fiscal stance, dismissed large‑scale subsidies as “economic illiteracy”. With the IMF urging prudence, the scheme stands as the government’s most visible energy‑cost response for the manufacturing sector.

Analysts reckon the scheme’s narrow focus could limit its impact on inflation, while investors watch fiscal discipline shape future policy choices.