Britain’s manufacturers have said the government’s upcoming Industrial Strategy will be “fatally flawed” if it fails to tackle the high energy costs faced by the sector.
According to Make UK, which represents the sector, industrial energy costs in the UK are currently four times as high as the US and 46% above the global average.
Last year, UK Steel highlighted how high prices had crippled domestic steel producers, which are paying as much as 50% more than competitors in France and Germany.
The upcoming Industrial Strategy will prioritise eight ‘growth’ sectors: advanced manufacturing, clean energy, creative industries, defence, digital and technologies, financial services, life sciences, and professional and business services.
In addition, the UK’s net zero plans will see many industries needing to embrace a programme of electrification instead of manufacturing processes powered by fossil fuels.
However, Make UK warned that current energy prices make this uneconomical for most businesses...