Unlocking £130bn for the UK economy by 2050 could hinge on cutting business energy costs, according to a report published this week by the Confederation of British Industries (CBI) and Energy UK. The report, titled ‘Cutting business energy costs: A blueprint to boost growth’, was released on 14 July and draws on analysis from Cornwall Insight and the National Institute of Economic and Social Research (NIESR).
Together, the CBI and Energy UK have called on the Government to reform energy policy in order to drive business growth. They argue that such reform will help generate over £130bn in additional value for the country by the middle of the century. The blueprint presents a case for lowering energy costs as a catalyst for broader economic expansion.
“CBI and Energy UK report says cutting business energy costs could generate £130bn for UK economy by 2050.”
With businesses facing high energy bills, the report suggests that targeted policy changes could release investment and productivity gains. The precise measures proposed are not detailed in the report's public summary, but the central claim is clear: reducing the energy burden on companies could deliver a substantial boost to the UK economy over the next 25 years.
The timing of the report comes as the government considers its next steps on energy strategy and industrial competitiveness. Whether ministers will take up the CBI and Energy UK's call remains to be seen, but the potential prize – £130bn in added value by 2050 – is likely to focus minds.