The Autumn Budget 2026 was delivered on 28 October, and the reaction from UK manufacturing has been mixed at best. There’s confirmed help on electricity bills and a bigger tax break for new investment, but industry bodies say the Budget didn’t tackle the high wholesale electricity prices that hit factories hardest. Yesterday we looked at what manufacturers wanted from the Budget. Here’s what was actually announced, and what it means if you buy or make steel parts in the UK.
What the Budget 2026 means for UK manufacturers
According to the official Budget 2026 document on GOV.UK:
- Electricity bills: the British Industrial Competitiveness Scheme (BICS) is funded to cut electricity bills by up to 25% for over 10,000 energy-intensive manufacturers in Great Britain from April 2027, with an extra payment in 2027 to cover support they’d have had if the scheme started sooner. Applications are now open.
- Investment allowances: the main first-year allowance on eligible new investment rises from 40% to 50%, and full expensing stays. The main rate of writing down allowances falls by two percentage points to 12% from April 2027.
- Other energy measures: the main rate of the Climate Change Levy on electricity will be frozen from 1 April 2028.
- Wages: the National Living Wage rises 3.9% to £13.21 an hour on 1 April 2027.
What industry is saying
Make UK chief executive Stephen Phipson said: “This Budget has failed to address any of the fundamental costs holding back investment and growth in manufacturing.” UK Steel said its latest electricity price report shows British steelmakers paying 49% more for electricity than competitors in France, costing the industry an extra £66m this year. It had proposed a wholesale electricity price rebalancing mechanism, costed at around £50m a year, which wasn’t taken up. Director General Peter Brennan called the Budget “a missed opportunity for British steelmaking”.
What it means for buyers of steel parts
- Don’t expect overnight price changes. The electricity discount starts in April 2027 and only applies to firms that qualify, so energy will stay a big part of the cost of cutting, folding and welding steel for now.
- Labour costs go up next April. The higher National Living Wage feeds into every made-to-order part, so budget for it when planning 2027 spend.
- Get current quotes. If you’re planning next year’s work, ask suppliers for up-to-date prices rather than relying on last year’s figures.
UK-made in Shaw, Oldham
At Kaizen Engineering we laser cut, fold and fabricate made-to-order steel parts at our works in Shaw, Oldham, from one-offs and short batches to regular repeat work. We offer same-day quotes and same-day laser cutting. Find out more about our laser cutting, press braking and steel fabrication services.
Send us your drawing
Email your drawing to sales@kaizen-eng.com with the material, thickness and quantity, or use our request a quote page, and we’ll come back with a quote the same day.
Kaizen Engineering, Thomas Street, Shaw, Oldham OL2 8PG
Made Up North. Built to Last.
Sources
- HM Treasury, “Budget 2026”, GOV.UK, 28 October 2026: gov.uk
- The Manufacturer, “Is Chancellor John Healey’s first Budget a missed opportunity?”, 28 October 2026: themanufacturer.com
- The Energyst, “Budget misses opportunity to tackle crippling electricity costs for British steelmakers”, 28 October 2026: theenergyst.com
