Workers at Nissan plantWorkers at Nissan plant

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Automotive industry could get more help with energy bills as rising costs take their toll

  • Government working on plans to help businesses with rising energy bills
  • Business Secretary Kwasi Kwarteng says it is ‘essential’ to help heavy industry
  • Move would help around 300 businesses and support 60,000 jobs

Time 7:30 am, August 13, 2022

The automotive industry could receive further help with rising energy bills as part of government plans to aid businesses as they attempt to ride out the current crisis.

Business Secretary Kwasi Kwarteng said that it was ‘essential’ to help heavy industry, including car building, to cut production costs.

He is proposing that the Government increases the exemption from some environmental and policy costs that certain companies were given in March.


The new proposal would increase the exemption from 85 per cent to cover 100 per cent of the costs.

The move could be implemented even if the Government refuses to commit to helping households with mounting bills.

Mr Kwarteng said: ‘British manufacturers are the lifeblood of our economy and central to our plans to overcome this period of economic uncertainty.


‘With global energy prices at record highs, it is essential we explore what more we can do to deliver a competitive future for those strategic industries so we can cut production costs and protect jobs across the UK.’

The price of electricity has risen more for industries in the UK than in other countries, the Government said. This could hamper investment and the viability of these businesses, it added.

The new proposal would help around 300 businesses and support 60,000 jobs in the UK.

It comes at the same time as ministers refuse to do more for households until the new prime minister is in place.

The energy price cap might reach close to £5,300 in April, according to new forecasts released on Friday. This will force families to make stark choices between eating and heating their homes, campaigners say.

On Friday, Chancellor Nadhim Zahawi told Sky news: ‘Yesterday I met with the industry to look at what more we can do with the industry on direct debit, on pre-payment meters, all the things that families are worried about, we’re making sure we’re doing the work so on September 5 the new prime minister can hit the ground running and get those things into place.’

Jack Williams's avatar

Jack joined the Car Dealer team in 2021 as a staff writer. He previously worked as a national newspaper journalist for BNPS Press Agency. He has provided news and motoring stories for a number of national publications including The Sun, The Times and The Daily Mirror.



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