Business Secretary Peter Kyle has pledged his support for British industries with an announcement of £420 million energy savings, but declined to comment on whether they would face tax rises in the upcoming Budget.

On Friday, the Government confirmed it was going ahead with plans to increase the discount on electricity network charges for businesses in the most energy-intensive sectors from 60% to 90%.

The move, which was proposed earlier this year and has been subject to a consultation, will see about 500 businesses save up to £420 million a year.

Making the announcement on a visit to the Encirc Glass factory in Elton, near Chester, Mr Kyle said: “This is targeted support for energy intensive industries, so we’ll be injecting into this £420 million worth of savings.

“That means that British businesses from today are going to be £420 million more competitive.”

When asked whether he could reassure businesses in the run up to the Budget next month, he said: “Don’t go on my words, go on my actions.”

Mr Kyle said the Budget, which will be delivered on November 26, would “build on” progress made by the Government since Labour came to power.

Asked whether the Government would stick to manifesto promises not to raise taxes in the Budget, he said: “The Budget will be in a couple of weeks time. But don’t just think about what might happen in the future. Take us at what we have actually done – planning reform, regulatory reform, a 10-year industrial strategy.

“We are making sure that we are targeting support to those high energy industries. We’re making sure we’re getting the infrastructure of our country, with 1.5 million homes, right through to the AI infrastructure that businesses will be depending on in the future right where it needs to be.”

Asked again by the PA news agency if he could confirm whether manifesto pledges not to raise taxes would be kept, he said he would not comment publicly on the Budget.

He said: “There are quite severe market sensitivities around conjecture about the Budget, so we are trying our best to focus businesses on what we are already doing, because that is a very good indication of how we will approach situations like this when we make decisions about the future.

“The Budget will come in a few weeks time and we will be building on all of the great achievements that this Labour government has had since we came into office.”

Mr Kyle was given a tour of the Encirc Glass factory, where bottles for a range of brands, including Guinness, WKD and Yellow Tail wine,  are made.

The company’s managing director Sean Murphy said the announcement would be a “major boost” for the company.

He said: “By cutting the costs of energy in this way, the Government is helping our industry to support thousands of jobs across the country whilst we make the transition to renewable sources of power. 

“We welcomed the opportunity to engage with the minister on the pressing challenges facing our sector. Continued government support for vital industries like glass manufacturing is essential to safeguarding jobs and unlocking investment across all regions of the UK.”

UK Steel welcomed the announcement, but director general Gareth Stace said it was “frustrating” that it would have to wait until 2027 for the savings.

He said: “The Government’s welcome move to uplift network charging compensation to 90% is a necessary step in the right direction, which will eventually save our sector £14.5 million a year.

“But a price gap will remain, and the wholesale price element must also be reformed next, or the UK steel industry will continue to decline.”

Mr Kyle said the Government was “bold” in supporting the British steel industry and he planned to release a steel strategy later this year.