Energy costs threaten industry

Britain risks becoming the first advanced economy without a significant industrial base. An increasing number of manufacturers are moving production overseas or, are actively considering doing so. In effect, high industrial energy costs are leading to deindustrialisation.

Last year the government’s Industrial Strategy promised “bold action” to bring down energy costs. Yet nothing has yet been delivered to support businesses.

Britain’s industrial energy prices which were already the highest in the G7 have increased further since the start of the conflict in the Middle East.

‘Act now’

Employer organisation Make UK (formerly the Engineering Employers’ Federation) says that the government needs to act now, including widening the British Industrial Competitiveness Scheme to all manufacturing industry and to speed up implementation.

Presently the scheme is aimed at only 10,000 out of the 130,000 manufacturing companies.

‘Almost 1 in 10 companies have moved production overseas.’

Make UK’s survey found that almost 1 in 10 of companies have already moved production overseas due to higher business costs, particularly energy bills.

TUC general secretary Paul Novak joined in with the call by Make UK for government action on energy costs. And individual unions have concerns about specific industries like steel and ceramics.

Emphasis

Campaigns like the TUC’s Futureproofing Manufacturing are not fully focused on the retention of industry here in Britain. Much of the emphasis from the union movement has been on decarbonisation and achieving net zero – hoping for a balanced approach.

On the other hand Unite is quite clear, about oil and gas in particular. It says no ban without a plan and has questioned illusions peddled on “green jobs”.