Renewed support for decarbonisation, renewable energy projects, grid upgrades and digital infrastructure will have been on the Budget wish lists of many industrials and energy businesses.
Industry groups have called for measures to lower energy costs, expand competitiveness schemes and introduce targeted incentives for electrification and clean energy investment.
Although the recent announcements present opportunities for businesses investing in efficiency, sustainability and advanced technologies, there remain rising costs and regulatory risks for energy intensive or carbon-heavy operations.
When it comes to modernising UK industry and accelerating the transition to net zero, stability and clarity around reliefs will be crucial to giving companies the confidence to commit to long-term capital projects.
On this front, collaborative research and development (R&D) cash grants of up to £20–50m depending on project size and scope, and the pledge of an additional £1.5bn to extend the DRIVE35 programme to back the automotive sector, will provide crucial support.
However, UK industry continues to navigate complex challenges and may require further targeted measures to build on these advances.