Budget comment: Schneider Electric UK chief on energy, skills and AI

Energy Costs in Industry

“Putting energy at the centre of the Budget recognises the pressure high energy costs continue to place on UK industry, constraining competitiveness and investment in growth. Removing standing charges, VAT cuts and cheaper EV charging are all important steps - but immediate relief must be matched by long-term reform that brings down the structural cost of energy.

Making electrification more affordable will remain central to its acceleration up and down the UK. Businesses need the confidence and certainty to invest in the infrastructure and energy management systems that will help them understand consumption, reduce waste and manage demand more effectively. 

The commitment to cheaper clean power, faster grid connections and £2 billion for the new Energy Wealth Fund can help unlock this investment. The test now is whether these reforms deliver reliable, lower-cost energy and stronger resilience for businesses in every part of the country.”

Skills and the energy transition

“The Budget’s focus on industrial growth, energy reform and infrastructure recognises the scale of the UK’s economic opportunity. Delivering it will depend on whether businesses have access to the skills needed to build, operate and maintain increasingly electrified and connected systems.

Practical, employer-led training, upskilling existing workers and bringing new talent into the sector must remain central. The commitment to a more pro-business, high-skilled visa system is also a positive step, helping employers access specialist talent where it is needed.

This now needs to be matched by targeted investment in further-education colleges, high-quality apprenticeships and flexible retraining. Working with devolved and local leaders can help employers and training providers respond to the needs of local economies, creating opportunities and removing a fundamental barrier to growth.”

Digitalisation and AI

“The Budget’s £700 million AI package, including additional support for the Sovereign AI Unit and locally led AI adoption, reinforces how much AI is central to the UK’s growth strategy. The opportunity now is to ensure this translates into practical gains to build resilience into British industry.

By connecting operational data with energy-management and automation systems, manufacturers can identify inefficiencies, improve performance and strengthen resilience. Our research found that 48% of UK industrial leaders see profitability and efficiency as a leading incentive for adopting autonomous technologies, yet only 8% have reached full autonomy.

Support for AI deployment must therefore sit alongside reliable energy infrastructure and accessible digital-adoption support for smaller firms. Simplifying access to R&D tax reliefs and improving venture-capital schemes can also help innovative businesses invest, scale and turn digital ambition into productivity gains.”

• David Hall, Zone President UK & Ireland at Schneider Electric