Referral of the proposed British Industrial Competitiveness Scheme by the Department for Business and Trade
The Subsidy Advice Unit (SAU) has accepted a request for a report providing advice to the Department for Business and Trade (DBT) concerning its proposed British Industrial Competitiveness Scheme.
Administrative timetable
| Date | Action |
|---|---|
| 24 July 2026 | SAU’s report to be published |
| 26 June 2026 | Deadline for receipt of any third-party submissions |
| 11 June 2026 | Beginning of reporting period |
Request from DBT
11 June 2026: The SAU has accepted a request for a report from DBT concerning the proposed British Industrial Competitiveness scheme. This request relates to a Subsidy Scheme of Particular Interest.
The SAU will prepare a report, which will provide an evaluation of DBT’s assessment of whether the subsidy scheme complies with the subsidy control requirements (Assessment of Compliance). The SAU will complete its report within 30 working days.
Information about the subsidy scheme provided by DBT
DBT is proposing to create the British Industrial Competitiveness Scheme (BICS), a subsidy scheme intended to drive growth and investment in Great Britain and increase the international competitiveness of British manufacturing. It aims to address electricity policy cost distortions that undermine viable investment in certain electricity-exposed manufacturing sectors. This should help reduce the competitiveness gap between the UK and other countries. The scheme is targeted at eligible businesses operating in high growth manufacturing industries (‘frontier industries’) and sectors which provide critical inputs to these industries (‘foundational industries’), as identified by the UK government’s Modern Industrial Strategy, subject to a minimum level of electricity intensity.
Beneficiaries will receive exemptions from electricity levies associated with three schemes: the Renewables Obligation, Feed-In Tariffs, and the Capacity Market; these exemptions may cover up to 100% of these costs and are expected to provide savings of up to £40 per MWh. There will also be an additional payment to stimulate further investment in the first year of the scheme, roughly equivalent to an additional year of support. The overall budget for the scheme is approximately £600 million per annum. BICS will launch in April 2027 and is expected to run until 2035, with a review point in 2030.
To be eligible, businesses will need to demonstrate that they operate in an eligible sector and manufacture eligible products. The full lists of eligible sectors (by SIC code) and eligible products (by HS code) are set out in Annex A of the published government consultation response (linked below). The value of the support each beneficiary receives will also be determined by the proportion of electricity consumption at each manufacturing site which relates to eligible activity.
Further detail on the scheme, including the lists of eligible SIC and HS codes, can be found in the consultation response.
Information for third parties
If you wish to comment on matters relevant to the SAU’s evaluation of the Assessment of Compliance concerning the proposed British Industrial Competitiveness Scheme, please send your comments on the date stipulated in the timetable above. For guidance on representations relevant to the Assessment of Compliance, see the section on reporting period and transparency in the Operation of the subsidy control functions of the Subsidy Advice Unit.
Please send your submissions to us at sau-bics2026@cma.gov.uk, copying the public authority:
bics.correspondence@businessandtrade.gov.uk.
Please also provide a contact address and explain in what capacity you are making the submission (for example, as an individual or a representative of a business or organisation).
Notes to third parties wishing to make a submission
The SAU will only take your submission into account if it can be shared with DBT. The SAU will send a copy of your submission to DBT together with its report. This is to allow the public authority to take account of the submission in its decision as to whether to make or modify the scheme or its assessment. We therefore ask that you provide express consent for your full and unredacted submission to be shared. We also encourage you to share your submission directly with DBT using the email address provided above.
The SAU may use the information you provide in its published report. Therefore, you should indicate in your submission whether any specified parts of it are commercially confidential. If the SAU wishes to refer in its published report to material identified as confidential, it will contact you in advance.
For further details on confidentiality of third party submissions, see identifying confidential information in the Operation of the subsidy control functions of the Subsidy Advice Unit.
Contacts
- SAU project team: sau-bics2026@cma.gov.uk
- CMA press team: 020 3738 6460 or press@cma.gov.uk