Britain risk rampant deindustrialisation if domestic energy prices remain at current levels, Make UK has warned.
The body warned that an increasing number of manufacturers are moving production overseas, or actively considering doing so, in response to soaring costs.
Electricity in the UK is more expensive than in many of its European counterparts and remains more costly than it was before the 2022 price spikes driven by Russia’s invasion of Ukraine. This is largely because the UK relies on gas to provide a consistent base load energy supply and the fuel has been subject to significant market volatility. British manufacturers have been hit particularly hard, while businesses looking to expand or modernise have faced delays connecting to the grid.
While the government has said it will slash green levies to reduce the high energy costs faced by British businesses, Make UK claimed that nothing has been delivered yet.
“The time for talking is over,” said Stephen Phipson, Make UK CEO. “The time...