Foreign Direct Investment

Lord Sharpe of Epsom Excerpts

Tuesday 10th March 2026 Lords Chamber

[Lord Sharpe of Epsom (Con)]

My Lords, a report from the CBI and Energy UK found that 40% of firms have reduced investment because of high electricity costs, going back to a question that was just asked. Does the Minister accept that funding contracts for difference—subsidies through electricity bills—is making Britain more expensive and that key industrial sectors are becoming increasingly unattractive for investment, both foreign and domestic?

[Lord Stockwood (Lab)]

It is undeniable that there is a challenge in trying to get the balance between the energy sovereignty that I previously mentioned and the need to make us attractive in the short term. This Government are taking practical steps to reduce barriers, including targeted regulatory simplification, faster grid connections, planning reforms and action on energy costs. The energy-intensive industries exemption scheme provides 85% relief on electricity policy costs for eligible energy-intensive industries. The British industrial competitiveness scheme makes eligible firms exempt from green energy levies, and 7,000 companies come under that scheme. Trying to balance our need for sovereignty and attractiveness for investment is something to which we give careful consideration day by day.