Make UK has written to the Secretary of State for Business, Innovation, Science and Trade, Jonathan Reynolds MP, urging the Government to urgently review the eligibility criteria for the British Industrial Competitiveness Scheme (BICS), alongside taking action to reduce the underlying cost of industrial electricity.
In a letter following the Budget, Make UK Chief Executive Stephen Phipson argues that the Government risks excluding internationally competitive manufacturers facing demonstrably high electricity costs because of the sectors and product classifications under which they operate.
With 13% of manufacturers reporting that another energy price shock could prove terminal for their business, urgent action is needed from Government to ensure businesses do not miss out on support.
While welcoming the clarification of how BICS will be funded, Make UK warns that the current eligibility criteria could leave some energy-intensive businesses without vital support until the proposed review in 2030.
The letter highlights the experience of Advance Tapes Group, a manufacturer based in Thurmaston employing 102 people and exporting more than 75% of its UK production.
Despite reducing its electricity consumption by 22% between 2021 and 2025, Advance Tapes saw its electricity bill rise by 52%, from approximately £342,000 to £518,000. Its average effective electricity cost increased from around 12p to 23p per kWh.
Yet the business appears largely excluded from BICS because most of its pressure-sensitive adhesive tapes do not fall within the scheme's selected sector and product classifications.
Make UK is calling on the Government to:
Allowing individual manufacturers to demonstrate eligibility based on their actual electricity intensity and exposure to international competition, rather than relying exclusively on sector averages and product classifications.
Including the additional burden of requiring HS codes for product identification.
To tackle the underlying cost disadvantage facing UK manufacturers and support investment, electrification and reindustrialisation.
Make UK warns that urgent action is needed to protect industrial jobs, encourage investment and ensure the Government's reindustrialisation ambitions become an economic reality, rather than just another political slogan.
Read the full letter to the Secretary of State below.