Budget breakdown: energy support for digital infrastructure left out of week of announcements
In all of the major fiscal announcements last week, most notably Wednesday’s Budget, there was a notable lack of financial support for digital infrastructure, particularly around energy costs. This is despite digital infrastructure being fundamental to the operation of Britain’s economy and the functioning of our society.
The UK’s electricity prices are a structural impediment to growth and competitiveness. techUK polling with Public First in February 2025 and February 2024 of 250 UK tech leaders found that UK energy costs, which are some of the highest in Europe, were the single greatest barrier to tech sector investment in the UK. The government’s ambitions to deepen the UK’s existing technological capability, to expand it for the future, to digitalise the UK’s public sector, and achieve clean power by 2030 (a target that relies on the digital solutions made possible by digital infrastructure) are all fundamentally incompatible with the high cost of energy plaguing the most innovative and dynamic sector of the UK economy.
The Budget itself included measures to support the infrastructure sector generally with regards to planning, on speeding up grid connections, announcements on AI Growth Zones, including planning and energy support for firms within those zones, and techUK’s recommendation of abolition of the Energy Company Obligation on consumer energy bills.
However, there was a conspicuous omission of energy support for the digital infrastructure sector across the country. Furthermore, increases to Business Rates on properties above £500,000 are expected to hit digital infrastructure operators around the UK especially hard. The lack of general support for digital infrastructure in the Budget risks further increasing costs for operators and customers while reducing necessary investment.
It is not just the Budget where this support has been absent. On 24 November, the Government announced their consultation on eligibility for the British Industrial Competitiveness Scheme, which first appeared in their June 2025 Industrial Strategy. The consultation will run for eight weeks until 19 January. Members can find the full consultation page on GOV.UK
The proposed scheme will cut energy bills for businesses in ‘manufacturing frontier industries’ within the IS-8, or those in a foundational manufacturing sector that supplies essential inputs to those businesses, by £35-£40 per MwH in order to support the delivery of the Industrial Strategy. The scheme is designed to support energy intensive businesses, and it is estimated 7000 firms will receive support from April 2027 as part of the scheme. The BICS follows on from the British Industrial Supercharger, which reduces energy costs by 60-90 percent for the steel, cement and glassmaking sectors.
Both these schemes are designed to combat high UK energy prices, and yet neither makes provision for digital infrastructure. The government claim they are restricting the scheme to manufacturing because ‘there is substantial evidence linking high electricity costs with decreasing investment and growth in manufacturing industries’. However, this logic also applies to digital infrastructure. In effect, the current course means that high energy costs for digital infrastructure will linger, and, inevitably, be passed on to business and individual customers.
Furthermore, this will more greatly punish those firms that have digitalised their own systems. These firms, which have invested in Britain’s vibrant tech sector and which aim to raise their own productivity, will be unfairly punished for doing so as unmitigated energy costs force prices up for all services that use digital infrastructure. This will also punish government itself, which will not only have to pay higher prices for its own digital transformation, but will also increase the potential distortionary effects of local energy relief through schemes such as AI Growth Zones, make support for these areas more expensive.
With these realities in mind, we urge the government to rethink its current approach by developing solutions to national energy challenges for digital infrastructure. In particular, the government should include foundational digital infrastructure such as telecoms and data centres, in the BICS when it finally begins operation. techUK will be responding to the consultation on this scheme and we urge techUK members to get in contact with [email protected]; [email protected]; [email protected] and [email protected] if they have any views on this topic.
We also ask that government understand how digital infrastructure investment will be negatively affected by changes to business rates and how these costs will be passed on to customers, which are directly counter to the government's stated growth ambition. Government needs to make sure the Valuation Office Agency, shortly to be merged with HMRC, works to mitigate the impact that this will have on the sector’s ability to invest. We are therefore planning to respond to the government’s call for evidence on the topic to urge a rethink on this issue. Please get in touch with [email protected]; [email protected]; [email protected] and [email protected] if you would like to feed in.
We see the treatment of digital infrastructure as a test case for the government’s thinking around Industrial Strategy, as combatting high energy costs is an essential part of supporting the digital and technology industry as one of the IS-8 sectors. In order to fulfil the pledges made in the Industrial Strategy, and make progress on the wider pledges of this government, bringing down energy prices for digital infrastructure must be a priority for the government.
Archie Breare joined techUK in September 2022 as the Telecoms Programme intern, and moved into the Policy and Public Affairs team in February 2023.
Before starting at techUK, Archie was a student at the University of Cambridge, completing an undergraduate degree in History and a master's degree in Modern British History.
In his spare time, he likes to read, discuss current affairs, and to try and persuade himself to cycle more.
Edward leads the Digital Economy programme at techUK, which includes our work on online safety, fraud, and regulation for growth initiatives.
He has prior experience working for the Department for Digital, Culture, Media and Sport and has previously worked for a number of public affairs consultancies specialising in research and strategy, working with leading clients in the technology and financial services sectors.
Luisa C. Cardani is the Head of the Data Centres Programme at techUK, aiming to provide a collective voice for UK operators and working with government to improve business environment for the data centres sector.
Prior to joining techUK, Luisa worked in the Department for Digital, Culture, Media and Sport as the Head of International Data Protection, where she led on the development of elements of the UK's data protection and privacy policy. In her role, she was also the UK official representative for the EOCD Privacy Guidelines Informal Advisory Group.
She has held a number of position in government, including leading on cross-cutting data provisions in the EU-UK Trade and Cooperation Agreement, and in high priority cross-departmental projects when working in the Department of Business, Energy and Industrial Strategy.
She holds an M.Sc. from University College London's Department of Political Sciences.
Associate Director, Digital Infrastructure, techUK
Sophie Greaves
Associate Director, Digital Infrastructure, techUK
Sophie Greaves is Associate Director for Digital Infrastructure at techUK, overseeing the Communications Infrastructure and Services Programme at techUK, and the UK Spectrum Policy Forum.
Sophie was promoted to Head having been Programme Manager for Communications Infrastructure and Services, leading techUK's telecoms activities, engagement and policy development. Previously, Sophie was Programme Assistant across a variety of areas including the Broadband Stakeholder Group, Central Government, Financial Services and Communications Infrastructure programmes.
Prior to joining techUK, Sophie completed a masters in Film Studies at University College London; her dissertation examined US telecoms policy relating to net neutrality and content distribution.
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Antony Walker is deputy CEO of techUK, which he played a lead role in launching in November 2013.
Antony is a member of the senior leadership team and has overall responsibility for techUK’s policy work. Prior to his appointment in July 2012 Antony was chief executive of the Broadband Stakeholder Group (BSG), the UK’s independent advisory group on broadband policy. Antony was closely involved in the development of broadband policy development in the UK since the BSG was established in 2001 and authored several major reports to government. He also led the development of the UK’s world leading Open Internet Code of Practice that addresses the issue of net neutrality in the UK. Prior to setting up the BSG, Antony spent six years working in Brussels for the American Chamber of Commerce following and writing about telecoms issues and as a consultant working on EU social affairs and environmental issues. Antony is a graduate of Aberdeen University and KU Leuven and is also a Policy Fellow Alumni of the Centre for Science and Policy at Cambridge University.
As Head of Public Affairs, Alice supports techUK’s strategic engagement with Westminster, Whitehall and beyond. She regularly works to engage with ministers, members of the UK’s parliaments and senior civil servants on techUK’s work advocating for the role of technology in the UK’s economy as well as wider society.
Alice joined techUK in 2022. She has experience working at both a political monitoring company, leading on the tech, media and telecoms portfolio there, and also as an account manager in a Westminster-based public affairs agency. She has a degree from the University of Sheffield in Politics and Philosophy.
Edward leads the Digital Economy programme at techUK, which includes our work on online safety, fraud, and regulation for growth initiatives.
He has prior experience working for the Department for Digital, Culture, Media and Sport and has previously worked for a number of public affairs consultancies specialising in research and strategy, working with leading clients in the technology and financial services sectors.
Nimmi Patel is the Associate Director of Policy at techUK. She works on all things skills, education, and future of work policy, focusing on upskilling and retraining. Nimmi is also an Advisory Board member of the Digital Futures at Work Research Centre (digit). The Centre’s research aims to increase understanding of how digital technologies are changing work and the implications for employers, workers, job seekers, and governments.
Prior to joining the techUK team, she worked for the UK Labour Party and New Zealand Labour Party, and holds an MA in Strategic Communications at King’s College London and BA in Politics, Philosophy and Economics from the University of Manchester. She also took part in the 2024-25 University of Bath Institute for Policy Research Policy Fellowship Programme and is the Education and Skills Policy Co-lead for Labour in Communications.
Samiah Anderson is the Head of Digital Regulation at techUK.
With over seven years of Government Affairs expertise, Samiah has built a solid reputation as a tech policy specialist, engaging regularly with UK Government Ministers, senior civil servants and UK Parliamentarians.
Before joining techUK, Samiah led several public affairs functions for international tech firms and coalitions at Burson Global (formerly Hill & Knowlton), delivering CEO-level strategic counsel on political, legislative, and regulatory issues in the UK, EU, US, China, India, and Japan. She is adept at mobilising multinational companies and industry associations, focusing on cross-cutting digital regulatory issues such as competition, artificial intelligence, and more.
She holds a BA (Hons) in Politics, Philosophy, and Economics from the University of London, where she founded the New School Economics Society, the Goldsmiths University chapter of Rethinking Economics.
Audre joined techUK in July 2023 as a Policy Manager for Data. Previously, she was a Policy Advisor in the Civil Service, where she worked on the Digital Markets, Competition and Consumers Bill at the Department for Science, Innovation and Technology, and at HM Treasury on designing COVID-19 support schemes and delivering the Financial Services and Markets Bill. Before that, Audre worked at a public relations consultancy, advising public and private sector clients on their communications, public relations, and government affairs strategy.
Prior to this, Audre completed an MSc in Public Policy at the Korea Development Institute and a Bachelor's in International Relations and History from SOAS, University of London. Outside of work, she enjoys spending time outdoors, learning about new cultures through travel and food, and going on adventures.
Archie Breare joined techUK in September 2022 as the Telecoms Programme intern, and moved into the Policy and Public Affairs team in February 2023.
Before starting at techUK, Archie was a student at the University of Cambridge, completing an undergraduate degree in History and a master's degree in Modern British History.
In his spare time, he likes to read, discuss current affairs, and to try and persuade himself to cycle more.
Dani joined techUK in February 2025 as a Policy Manager in the Digital Regulation team.
Prior to this, Dani worked in political monitoring where she was a consultant for Digital, Culture, Media and Sport. In this role, she developed a strong understanding of parliamentary procedure, closely following all of the major developments in the tech centre and working with several key stakeholders and regulators.
She has an undergraduate degree in History from the University of Bristol and an MPhil in Modern European History from the University of Cambridge.
Outside of tech, Dani has a strong interest in addiction policy, particularly towards drugs, having written her dissertation on the topic as well as several subsequent research projects. In her spare time, she enjoys cooking and following all things motoring, whether that be F1, MotoGP or Formula E.
Oliver is a Junior Policy Manager at techUK, working across Public Affairs and Digital Regulation policy. He supports the organisation’s engagement with government and parliament, contributes to shaping techUK’s regulatory agenda, and plays a key role in coordinating political outreach, policy projects, and flagship events.
He joined techUK in November 2023 as a Team Assistant to the Policy and Public Affairs team, before stepping into his current role. He has been closely involved in efforts to ensure the tech sector’s voice is heard in the policymaking process.
Oliver holds a Master’s in Policy Research from the University of Bristol and a BSc in Policy from Swansea University. During his studies, he contributed to mental health research as a Student Research Assistant for the SMaRteN network.
Outside of work, Oliver is a keen debater and remains active in the UK debating community, having previously led the Swansea University Debating Union. He enjoys exploring complex issues from multiple perspectives and values clear, thoughtful communication in policy discussions.
Tess joined techUK as an Policy and Public Affairs Team Assistant in November of 2024. In this role, she supports areas such as administration, member communications and media content.
Before joining the Team, she gained experience working as an Intern in both campaign support for MPs and Councilors during the 2024 Local and General Election, and working for the Casimir Pulaski Foundation on defence and international secuirty. She has worked for multiple charities, on issues such as the climate crisis, educational inequality and Violence Against Women and Girls (VAWG). In 2023, Tess obtained her Bachelors of Arts in Politics and International Relations from the University of Nottingham.
Archie Breare joined techUK in September 2022 as the Telecoms Programme intern, and moved into the Policy and Public Affairs team in February 2023.
Before starting at techUK, Archie was a student at the University of Cambridge, completing an undergraduate degree in History and a master's degree in Modern British History.
In his spare time, he likes to read, discuss current affairs, and to try and persuade himself to cycle more.
