As businesses invest more and the economy grows as a result, as much as half of that lost tax revenue would come back to the Government in other taxes, according to estimates from the CBI, the National Institute of Economic and Social Research, Energy UK and Cornwall Insight.
The rest would need to be covered by other tax increases, higher government borrowing or funding schemes to spread the cost to businesses over decades to come as the money goes into projects including grid upgrades.
The approach would mirror reductions in household bills this spring when Rachel Reeves, the Chancellor, cut back regulatory costs on domestic energy use.
Mr Burnham recently said government policy must be “serious about putting more money back into people’s pockets”.
Electricity costs for businesses are already around 50pc higher than the G7 average and are set to mount further. Cornwall Insight predicts bills for companies not covered by government support schemes will rise by as much as a fifth next year.
Dan Morris, Cornwall Insight’s chief executive, said: “While wholesale markets get most of the attention, it’s rises in policy costs and network charges that are locking in price pressures through this decade and undermining businesses’ ability to predict them.”
The CBI’s call came as the think tank Policy Exchange – backed by Sir Sajid Javid, the former chancellor – called for the abolition of taxes including inheritance tax, National Insurance contributions and stamp duty on property and shares.
Sir Sajid said: “The tax burden now stands at a 70-year high. More than that, the system’s structure has itself become a brake on growth.
“The most damaging examples of this do harm that is far out of proportion with the revenue they raise. Fix that and we will begin to fix the economy.”
Some tax rises are also on the think tank’s list of proposals including abolishing VAT exemptions and reductions, which would mean an extra levy on products such as food, energy bills and children’s clothes.
Meanwhile, the Real Rates Reform Alliance, a coalition of business groups including UK Hospitality and the Institute of Directors, called for a 2pc tax on online sales to fund tax cuts for bricks-and-mortar businesses.
Ros Morgan, the chairman of the alliance, said companies were raising prices and cutting jobs because of the cost of business rates. She added: “Business rates should support growth, not hold it back.
“Andy Burnham has already acknowledged the current system isn’t fair and talked about levelling the playing field between online and some physical businesses. We want him to go further.”
A government spokesman said: “Our manufacturing industries are vital to the UK’s success and economic growth and we are taking action to tackle the cost of energy.
“Our new British Industrial Competitiveness Scheme will help to reduce electricity bills by up to 25pc for over 10,000 manufacturing businesses while our Supercharger scheme will cut electricity costs for hundreds of our most electricity-intensive businesses.
“We have also announced £470m of support for the chemicals and ceramics industries and are working to get off the fossil fuel roller-coaster and onto clean home-grown power we control to bring energy security and lower bills for good.”
