Budget 2026: what does it mean for business electrification and clean growth?

29 October 2026 - For businesses focused on decarbonisation and electrification, one of the key takeaways from the Budget is the continued focus on a more electrified economy, alongside action to address energy costs. 

There are welcome measures, particularly around electricity bills and charging infrastructure, which should help incentivise and support the implementation of electrification. But there is relatively little new direct support specifically aimed at helping businesses electrify their operations. 

That distinction matters. Electrification can help businesses reduce emissions and exposure to volatile fossil fuel prices, while supporting clean growth, energy security, resilience and long-term UK competitiveness. But businesses also need the economics and infrastructure to make investment possible. 

Electricity affordability and bills reform 

For many businesses, the relative cost of electricity remains an important barrier to electrification. 

The Budget’s focus on reducing electricity costs and reforming energy bills is therefore welcome. The Government has set out a new Cost Control Framework and measures aimed at reducing electricity costs, alongside support for energy-intensive manufacturers through the British Industrial Competitiveness Scheme. 

More affordable and predictable electricity can help strengthen the business case for switching away from fossil fuels and investing in electric technologies. 

While these measures are not direct incentives for individual business electrification projects, addressing electricity costs in the longer term is an important part of creating the conditions in which those investments become more attractive. 

Supporting charging infrastructure 

There is also continued support for the transition to electric vehicles. 

The Government has committed £100 million over two years from spring 2027 to reduce the cost of charging at lower-powered public chargepoints, alongside previously committed investment in charging infrastructure. 

For businesses electrifying their fleets, as well as employees making the transition to electric vehicles, the availability and affordability of charging are practical considerations. 

Support for charging infrastructure and lower charging costs is therefore a positive step towards enabling electrification in practice. 

Where more is needed 

The Budget does not, however, provide significant new direct support specifically aimed at helping businesses electrify their operations, and important barriers to investment remain. 

Companies need affordable electricity, sufficient grid capacity and infrastructure, investable business cases, and the skills and supply chains required to deliver at scale. 

This is particularly important for businesses considering moving industrial processes, heating or other energy-intensive operations away from fossil fuels. The long-term opportunity may be compelling, but businesses still need investment cases that work today. 

Ahead of the Budget, Energy UK made the link between electricity affordability, electrification and competitiveness, calling for action to make electricity the affordable choice and unlock greater electrification. 

Electrification as a clean growth opportunity 

Getting these conditions right matters because the opportunity extends well beyond emissions reduction. 

Electrification has the potential to help businesses reduce their exposure to volatile fossil fuel markets, strengthen energy security and contribute to clean growth and a more competitive UK economy. 

The Budget contains welcome steps towards that, particularly through bills reform and support for charging infrastructure. These measures should help incentivise and support implementation, but further action will be needed to enable businesses to electrify at scale. 

UK Corporate Leaders Group want to see the Government build on these measures and continue working with business to address the remaining barriers to investment. 

The opportunity now is to ensure that action on electricity costs and infrastructure is matched by the wider conditions businesses need to invest with confidence, enabling electrification to contribute fully to clean growth, energy security and UK competitiveness. 

Read CLG UK’s Electrification briefing: New modelling: electrification key to UK economy & security 

Read the 2026 Budget: Budget 2026