A coalition of leading UK trade associations has warned the Chancellor that almost half of Britain’s industrial emissions are being ignored — and that failure to act will cost jobs, investment and the country’s competitive edge.
In an open letter to Rachel Reeves, more than 100 organisations led by ADE: Demand urged the Treasury to introduce a targeted discount for electricity in the Autumn Budget to help industries switch from gas to clean power.
They say nearly 50% of industrial emissions come from businesses outside the government’s hydrogen and carbon capture clusters — from distilleries in Scotland to ceramics kilns in the Midlands and food processors in East Anglia.
These firms face what the coalition calls a “perfect storm” of crippling electricity prices and grid delays.
“Right now, we are writing off half of our industrial economy,” said Sarah Honan, Head of ADE: Demand.
“Thousands of vital businesses and hundreds of thousands of jobs have no viable path to decarbonisation. Fifty percent of industrial emissions cannot be an afterthought.”
The letter warns that up to 1.4 million manufacturing and utility jobs are at risk as high electricity prices make clean electrification “an economic non-starter”.
The UK now has the most expensive industrial power costs among IEA nations, with policy costs up to 14 times higher than in competitor countries.
The coalition says the current approach threatens energy security and drives “carbon leakage” — where British manufacturing moves abroad while emissions rise elsewhere. It argues that incentivising flexible demand is the best way to make use of renewables already on the system and reduce reliance on gas.
Their proposal is clear: introduce a targeted discount to narrow the price gap between electricity and gas for industrial users looking to electrify.
The group claims the move could unlock billions in private investment, create tens of thousands of jobs and secure the UK’s energy future.
“This is the single biggest step government could take to protect and champion British industry,” the letter says.
“Let’s not leave half of our industrial economy behind. Let’s give these businesses the tools to hit net zero, deliver green products for British consumers and win for the UK in international markets.”
The ball is now firmly in the Chancellor’s court.
Half of British industry ‘written off’ without electricity price fix appeared first on Energy Live News.