The Budget and your energy bill: what changed for businesses

Earlier this month we said we'd go through what the Budget actually says on energy. The Chancellor delivered it on Wednesday 28th October. Here's the short version for business owners. GOV.UK: Budget 2026 summary

Help for manufacturers

The biggest business measure is the British Industrial Competitiveness Scheme. It aims to cut electricity costs for eligible manufacturers by up to 25% from April 2027. Registrations close on 30th November, and businesses that apply this year can also get an extra one-off payment worth around a year's relief. If you make things and haven't checked whether you qualify, now is the time. GOV.UK: apply for the scheme

A small, slow change for everyone else

• The Climate Change Levy, a tax added to business energy bills, will be frozen on electricity from 1st April 2028. The rate on gas will keep rising with inflation. It's a modest saving, and it's still more than two years away. GOV.UK: Climate Change Levy rates
• The government says no new policy costs will be added to bills until a new cost control plan arrives with the Spending Review in 2027.
• The headline move on gas standing charges is aimed at households, not business contracts.

What didn't happen

There was no immediate cut to business energy bills this winter. Business contracts still have no price cap, so wholesale prices reach you directly. Carbon Brief's full round-up

Our suggestion

Plan as if prices stay high this winter. Check when your contract ends, see whether you qualify for the manufacturers' scheme before 30th November, and look at what you can control: how much energy you use, when you use it, and whether generating some of your own power stacks up.

If you'd like a second pair of eyes on what the Budget means for your sites, we're happy to have a quick, no-obligation chat.