Reacting to the Chancellor’s announcement of an extension to the British Industrial Competitiveness Scheme, Ben Martin, Policy Manager at the BCC, said:
“Plans to expand the British Industrial Competitiveness Scheme are recognition that it always needed to go further to support more businesses with their energy bills.
“The UK has some of the highest energy costs in the world, which damages growth.
“Expanding support to more of the most energy intensive firms through this scheme is key to helping them stay afloat and remaining competitive with other countries. It is also welcome that the support will now be backdated to April 2026, acknowledging the impact of recent volatility.
“But the Government must go further on supporting businesses with the cost of energy. High energy costs are affecting companies of all sizes and all sectors, not just those classified as the most energy intensive.
“Firms were already struggling with the cost of energy before the escalation of the Middle East conflict in March. Our research, in Q1 of 2026, shows that around half (52%) of businesses were facing pressure to increase their prices because of utility costs. This rises to 60% for manufacturers, and 75% in the hospitality sector.
“A BCC survey, currently in the field, is telling us four out of 10 businesses are now finding it difficult to pay their energy bills. This compares to a quarter (27%) in January.
“Government should fund at least part of the Renewables Obligation on business energy bills, just as it did for households. This would more closely align support for firms with the relief that was announced for domestic energy users in the Autumn Budget.
“As businesses navigate this uncertainty, it is essential that Ministers keep talking to them and keep all options on the table in the coming weeks and months.”