What the November 2025 Budget Means for Your Business Energy
By Switch365 - (2025-12-08)
The November Budget announced no new measures to lower business energy bills. Most of the support was aimed at households, not companies. However, there were a few updates worth being aware of, particularly for hospitality and manufacturing businesses.
Here’s the simple version.
1. No New Energy Discounts for SMEs
No new per-unit energy discounts or bill rebate schemes for businesses were announced.
Your costs will still be shaped by:
• Your contract and timing
• How and when you use energy
• Non-commodity charges such as networks and levies, which remain structurally high and unpredictable into 2026–27
2. Business Rates Relief (Shops, Pubs, Cafés, Hotels)
If you’re in retail, hospitality or leisure:
• Targeted business rates relief will continue from April 2026
• Transitional support will soften sudden increases following revaluation
• The second-site grace period for Small Business Rates Relief has been extended for eligible businesses
This doesn’t affect your energy bill directly, but it can help with overall operating costs.
3. Support for High-Energy Manufacturers
If your site is genuinely energy-intensive:
• Significant network charge relief is being applied for a narrow group of qualifying energy-intensive industries from 2026
• A further electricity cost support scheme has been outlined, subject to eligibility and implementation criteria
This only applies to businesses that meet strict qualification thresholds.
4. Tax Relief for Energy-Efficient Upgrades
From January 2026, updated capital allowance rules improve the economics of investing in qualifying equipment, such as:
• Efficient heating and cooling systems
• LED lighting
• Controls and automation
• Process efficiency equipment
This can reduce the cost of investments that lower overall energy usage.
5. No Big Changes to Energy Taxes
Climate Change Levy (CCL) rates are set to continue rising in line with inflation from 2027, although reliefs and exemptions remain available for some sectors.
For most SMEs, this reinforces one simple point:
Using energy more efficiently matters more than ever.
The Bottom Line
The Budget did not cut business energy bills.
But it did reinforce a few realities:
• Costs outside of your unit rate remain elevated
• Some sectors receive support elsewhere, such as rates relief or manufacturing schemes
• The cheapest bill is still the one you understand and actively manage
If you want clarity on your contract, usage or renewal options, our Triage review can break it all down in a few minutes.
