The Labour MP for Makerfield, Andy Burnham, has been urged to implement three immediate rule changes for all businesses on his first day as Prime Minister, aiming to unlock a £130 billion economic growth boost. The call comes from a joint report by the Confederation of British Industry (CBI) and Energy UK, which warns that high electricity prices are severely hampering productivity and competitiveness.
Three key changes demanded
The report identifies three critical actions: cutting electricity prices, reforming the energy system, and supporting business electrification—including increased use of electric vehicles. It highlights that UK electricity prices are approximately 45 per cent above the G7 median, describing this as “an anchor weighing down productivity and competitiveness across the whole economy.”
Day-one priority for new PM
Louise Hellem, chief economist at the CBI, stressed that reducing business energy costs should be “a day-one priority” for the new prime minister. She stated: “Years of loading policy costs on to electricity bills have left UK businesses facing some of the highest electricity costs among the world’s biggest economies. At a time when we really need firms to invest, electrify and compete on the world stage, these costs make all three goals more difficult, representing a massive drag on economic growth.”
Hellem added: “If we want to tackle the cost of living and invest in public services, we need stronger economic growth, and that can’t happen while firms are navigating sky-high energy bills.”
Energy UK chief echoes concerns
Dhara Vyas, chief executive of Energy UK, commented: “The UK cannot afford to let high energy costs continue to damage business investment, reduce our international competitiveness, and worsen the cost-of-living crisis.” The report warns that without action, the UK risks falling further behind global competitors.
Campaigners call for renewable shift
Robert Palmer, deputy director of Uplift, which campaigns against North Sea drilling, argued: “New drilling will do little for energy security. Without a rapid shift to the abundant renewable energy we have, and help to households to shift away from their reliance on fossil fuels, the UK will become ever more reliant on imported gas.”
Palmer added: “The government should ignore the special pleading of companies that have got very rich while households faced soaring energy bills and workers saw declining conditions and security. Instead, it should invest in industries with a future, like wind manufacturing, that can provide good jobs for generations of workers.”
