![\"Andy](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2025\/06\/Andy-Burnham-BBC.png\")
A combined group of business leaders and think tanks has delivered a blueprint for growth to the incoming Prime Minister Andy Burnham, calling for a cut in energy costs as an immediate priority.<\/p>\n
They warn that without tackling the country\u2019s cost of doing business he will not achieve his targets for economic growth and raising living standards.<\/p>\n
A new report from the CBI and Energy UK, with analysis from Cornwall Insight and the National Institute of Economic and Social Research (NIESR) says energy costs could be cut by a fifth and give the economy a \u00a3130 billion boost by 2050.<\/p>\n
This would require removing a range of green levies, in particular the Renewables Obligation (RO) and Feed-in Tariff (FiT) costs for all businesses. <\/p>\n
Analysts say Britain\u2019s electricity prices are 45% higher than the G7 average, putting businesses at a competitive disadvantage, stifling investment and contributing to the country\u2019s sluggish productivity growth since the 2008 global financial crisis. The report says four?in ten companies are cutting?investment due to high energy costs.<\/p>\n
Louise Hellem, CBI chief economist, said:\u00a0\u201cYears of loading policy costs onto electricity bills have left UK businesses facing some of the highest electricity costs among the world\u2019s biggest economies. <\/p>\n
\u201cAt 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.\u00a0\u00a0<\/p>\n
\u201cWith a new Prime Minister coming into office, it\u2019s clear that reducing business energy costs must be a day-one priority. If we want to tackle the cost of living and invest in public services, we need stronger economic growth \u2013 and that can\u2019t happen while firms are navigating sky-high energy bills.\u00a0\u00a0<\/p>\n
\u201cReliable, affordable energy is essential for all businesses. That starts by removing policy costs from bills, reforming our energy system and shaping the market to make electrification more practical and affordable.\u201d<\/p>\n
The warning comes as a cross-industry group led by North Sea energy producers will deliver a strongly worded letter to the incoming government today, warning that policy makers must back homegrown oil and gas ahead of imports, alongside greater support for UK manufacturing and industry.<\/p>\n
The letter is signed by industry executives, trade unionists, and trade bodies from chemicals to engineering, aggregates and building materials to the offshore energy sector and the shipping industry.<\/p>\n
It is being sent to all 403 Labour MPs and makes clear that the UK economy is at a turning point. It says decisions made now will be key to the economic success or failure of the UK in the coming decades.<\/p>\n
David Whitehouse chief executive of Offshore Energies UK said: \u201cOur colleagues in other industries are joining us to show their support for this basic message. <\/p>\n \u201cEnergy security, economic resilience and reindustrialisation depend on maintaining domestic energy production as well as greater investment in renewable and low-carbon technologies.<\/p>\n \u201cWe fully support the government\u2019s ambition to build a secure, lower-carbon energy system, but energy transition must follow an \u201call-energy approach\u201d that builds on existing industrial strengths and strengthens rather than weakens national industrial capability.\u201d<\/p>\n Gary Smith, GMB Union General Secretary, said: \u201cIn an increasingly uncertain world, it is more important than ever that we can get the energy we need to power our homes, businesses, and essential public services.<\/p>\n \u201cWe will need oil and gas for decades to come. Increasing our reliance on imported energy from overseas for the essential elements that power our economy and keep the country going, leaves us worryingly exposed.<\/p>\n \u201cGMB is looking to the Government to show it understands the significance of this moment \u2013 jobs, communities, and our national security are at stake.\u201d<\/p>\n \t <\/div>\n![\"David](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2023\/03\/David-Whitehouse-of-OEUK.png\")