Rising energy costs threaten business investment and UK competitiveness
Over 2025 and into 2026, energy prices have consistently ranked among the top concerns for UK firms, with CBI surveys showing that nearly 90% of businesses have seen their energy bills rise over the past three years. Four in ten firms have also indicated they plan to scale back investment as a consequence.
Energy costs are a critical factor in the UK’s global competitiveness. When business energy prices are high, British industries become less attractive relative to international competitors, increasing the risk of production shifting overseas and weakening the UK’s trade performance. Ultimately, this adds to the overall cost of doing business - curtailing growth and fuelling cost of living pressures.
A new CBI and Energy UK partnership
That is why, for the first time, the CBI and Energy UK have come together to set out a pathway to the future energy system the UK needs, while also cutting business energy costs today. This partnership reflects a shared recognition, shaped by the past five years, that energy can no longer be treated as a siloed policy area. Our first paper shows how high energy costs are holding back the UK economy, outlines the limits of existing support, and calls for a cross government national strategy to fix the problem.
In the coming months the CBI and Energy UK will be jointly undertaking a programme of policy and economic analysis, to examine how rising energy costs are influencing future investment decisions in the UK, assess funding models for essential energy infrastructure, and explore how government can reshape energy policy to better support both key industrial sectors and the everyday economy.
Further information
For more information, contact Tania Kumar , CBI Policy Director, Energy Transition.
