DBT consulting on eligibility for the British Industrial Competitiveness Scheme

How could DBT implement BICS?

DBT proposes that the scheme will start in April 2027, subject to legislation being in place, and run until 2035. A review will take place in 2030.

Businesses cannot receive exemptions through both the British Industry Supercharger (BIS) scheme and BICS. If your organisation meets the criteria for both schemes, DBT recommends that you apply for BIS, as it offers higher discounts.

How could DBT determine eligibility?

To be eligible for BICS, a business will need to meet the following criteria:

1. Operate in one of the manufacturing frontier industries within an IS-8 sector. Alternatively, a business would need to operate in a manufacturing foundational industry that provides important inputs to the frontier industries.
2. Be a manufacturer.
3. Meet the electricity intensity threshold.

Criterion 1 and Criterion 2

The Industrial Strategy set out the Standard Industrial Classification (SIC) codes defining frontier industries, and then defined them as subgroups within the ‘IS-8’ sectors. These sectors are advanced manufacturing, clean energy industries, defence, digital technologies and life sciences. Following this, DBT has produced a more granular SIC structure, specifically for BICS, published in Annex A of the consultation. SIC codes cover a variety of sectors including, but not limited to, manufacturing of motor vehicles, pharmaceutical products and batteries.

DBT proposes that, to qualify for BICS support, businesses must have an eligible SIC code and produce an eligible product. DBT has classified eligible products as ‘Harmonised System’ (HS) products that link to SIC codes in the relevant industry. Businesses applying for BICS will have to provide evidence to show they meet these criteria. As part of the consultation, DBT is asking manufacturers whether they agree with the proposal to use SIC and HS codes, and whether eligibility should extend to other industries.

Criterion 3

Eligibility for BICS will also depend on an electricity intensity test, similar to the one that applies to BIS. However, the threshold for BICS will be lower than for BIS, and the final threshold will be subject to consultation.

At the moment, DBT is consulting on the methodology to calculate electricity intensity for BICS, with the current options being:

• Total electricity expenditure / Gross Value Added (the formula used for BIS)
• Total electricity expenditure / total expenditure (where more of the focus is on the proportion of energy costs that make up total costs)

DBT is also consulting on the proposal to pro-rate exemptions according to the proportion of a business that falls into an eligible industry. The assumption is that some businesses will produce both eligible and non-eligible products.

A pro-rating could result in more businesses receiving support, but may also give the non-eligible part of a business an advantage compared to other non-eligible businesses.

Next steps

The consultation is open to responses until 19 January 2026, and the Government is likely to publish a summary of responses within 12 weeks of that date. This means we expect to see more details about the eligibility criteria for BICS by mid-April next year.

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