Chancellor cuts bills for thousands more firms as she continues Washington talks

The UK Chancellor has announced an expansion of electricity bill cuts for thousands more manufacturing firms as part of efforts to support businesses amid economic uncertainty linked to the Iran conflict. The British Industrial Competitiveness Scheme (BICS), initially set to reduce electricity costs by 25% for over 7,000 firms, will now cover 10,000 companies, including those in automotive, aerospace, steel, and pharmaceuticals sectors. The scheme, expected to be worth up to £600 million annually from April 2027, will also provide a one-off payment to an additional 3,000 businesses and retroactively cover support from earlier this year. Rachel Reeves made the announcement while attending the International Monetary Fund (IMF) spring meetings in Washington, where she has been engaged in discussions about the global economic fallout from the ongoing Iran conflict. During her visit, she criticized US-Israeli military actions in Iran, describing the war as a “mistake” that has not enhanced global security. Reeves also cautioned against reactive measures to the cost-of-living crisis, emphasizing the need for measured responses alongside international counterparts at the IMF. The expanded energy support aims to help UK manufacturers remain competitive and safeguard jobs amid rising global energy prices exacerbated by geopolitical tensions. Household energy bills are also expected to rise this year, but Reeves indicated that any assistance would be targeted at the most vulnerable rather than through broad subsidies. Meanwhile, talks continue in Washington regarding the Iran ceasefire, with the White House indicating ongoing discussions but no formal request yet for an extension of the truce due to expire soon. The Chancellor’s measures reflect the UK government’s broader strategy to bolster industrial resilience and economic stability in a volatile global environment.