British trade body UK Steel has called on the government to act quickly in Budget 2025, setting out six key measures to restore competitiveness, cut energy costs and accelerate decarbonisation in its latest budget document. The association is calling for rapid provision of targeted funding and reform of structural policies to support one of the UK's most strategic manufacturing sectors.
UK Steel has identified six key priorities for the 2025 Government Budget:
1. Rebalancing electricity prices in line with EU competitors
The association is calling for a wholesale price rebalancing mechanism to bring UK industrial electricity prices in line with the EU's cheapest producers. UK factories currently pay 14-25 per cent more than those in France or Germany, increasing costs by £26 million a year and eroding investment competitiveness.
2. Implement the increase in Network Charge Compensation and backdated to April 2025
UK Steel is demanding that Network Charge Compensation (NCC) be increased to 90 percent from the current 60 percent and backdated to April 2025. If not backdated, the sector will face an additional fine of £14.5 million, reducing margins in an already high cost environment.
3. Abolish the Carbon Price Support (CPS)
The association is calling on the government to scrap CPS, an additional carbon tax levied on electricity producers. Since coal power has already been phased out, the measure
