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Energy costs 'an anchor on our ambition', warns CBI chief

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09 Jun 2025

High energy bills in the UK are an ‘anchor’ on private sector ambitions, according to Rain Newton-Smith, CEO of the Confederation of British Industry (CBI).

Newton Smith told the business group’s annual business dinner in London that a ‘serious plan’ was needed to address the energy issue, arguing it was holding back investment and the country's competitiveness.

A reliance on natural gas has meant that both households and businesses have been exposed to volatile prices since Russia's invasion of Ukraine, says the CBI.

UK companies pay 50% more for their energy than counterparts in France and Germany - and four times more than comparable operators in the US and Canada, the business group adds.

Newton-Smith said: ‘How can UK business compete with one hand tied behind its back – and the other straining to keep the lights on? This is an anchor on our ambition. A crack in our economic security. And it must be fixed.

‘I know the energy transition has become controversial in some quarters. But this is not a choice between cheap energy and pursuing net zero. That is a false choice.

‘Let me be very clear: business isn’t interested in short-term politics – we’re focused on long-term results. We know the real opportunity for the UK lies in a low carbon economy – and investment in energy efficiency and new tech.’

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