FIRMS will be spared billions in green levies as Sir Keir Starmer bows to warnings net zero costs are pricing British industry out.

The PM will today unveil a ten-year Industrial Strategy that slashes electricity bills for more than 7,000 energy-intensive businesses.

Sectors such as steel, chemicals, and automotive industries will be relieved from green taxes, which have contributed to making UK power prices among the highest in Europe.

The changes – coming in from 2027 – will knock up to £40 per megawatt hour off energy costs, cutting some firms’ bills by up to 25 per cent.

Sir Keir hailed the plan as “a turning point for Britain’s economy and a clear break from the short-termism and sticking plasters of the past”.

He stated: “In times of global economic uncertainty, this provides the long-term stability and guidance that British businesses require to invest, innovate, and generate quality jobs, which will result in more money in people’s pockets as part of the plan for change.”

The move follows warnings from industry bosses that spiralling costs were driving investment abroad and threatening thousands of jobs.

Authorities assert that the price reductions won’t burden taxpayers; instead, they will be funded through reforms to the energy system and new revenue generated by linking the UK’s carbon pricing scheme with the EU’s.

Chancellor Rachel Reeves said the plan would “ease energy costs”, “upskill the nation” and “put more money in people’s pockets”.

A second scheme – the British Industry Supercharger – will boost discounts on network charges from 60 per cent to 90 per cent for the most energy-hungry firms starting in 2026.

Ministers also pledged to speed up grid access for new investment projects under a separate Connections Accelerator – part of the wider strategy – which will go live in 2025.

Energy Secretary Ed Miliband said British industry had been “held back” for too long by soaring bills and “volatile” gas markets.

Business groups welcomed the announcement but urged the government to move fast.

CBI chief Rain Newton-Smith said the plan sent “a positive signal” but added the UK must keep “a laser-like and unwavering focus” on staying globally competitive.