Government urged to cut business energy costs

26 Feb 2026

The government must deliver a robust national strategy to cut business energy costs, according to the UK's business and trade bodies.

The Confederation of British Industry (CBI) and Energy UK are warning that high business energy costs are threatening the UK's global competitiveness, dampening investment plans and putting the brakes on the country's growth ambitions. 

The groups say that a strategy must move beyond short-term crisis responses and set a clear path to a more affordable and sustainable energy future for businesses across the country.

A joint report examines how rising energy costs are influencing future investment decisions, assesses funding models for essential energy infrastructure and explores how government can reshape energy policy.

Dhara Vyas, Chief Executive of Energy UK, said: 'Energy costs persistently above those faced by their counterparts in other countries, harm the competitiveness of UK businesses, prevent them investing in the future - including in the switch to clean energy - and can contribute to businesses having to cut back their operations. 

'Along with the wider consequences for economic growth, consumer costs and inflation, high prices risk undermining our shared ambitions. The government has stepped in to help with household energy costs but any support for businesses so far has been limited. 

'Investment in our energy security and infrastructure is vital for the country's future, including our businesses, but we need a comprehensive review of how these costs are being met so they don't work against what we all want to see.'