UK tops industrial energy prices among advanced economies

UK must urgently cut its industrial energy bills—the highest among major advanced economies—to support a healthy manufacturing sector, according to industry group Make UK, as reported by Reuters on Monday.

Prime Minister Keir Starmer’s government is developing an industrial strategy to stabilise British manufacturing, which has been hit hard by Brexit, soaring energy costs, and global trade tensions.

Make UK called for the cancellation of climate levies on industrial energy and the introduction of a fixed industrial energy price to improve competitiveness.

UK had the highest industrial energy prices among International Energy Agency members in 2023, largely due to its gas reliance and electricity pricing system.

Make UK CEO Stephen Phipson warned that failing to prioritise addressing high industrial energy costs could threaten national security and accelerate de-industrialisation.

Manufacturing’s share of the UK economy fell to a record low of 9 per cent last year, the fastest decline among major European countries over the past 30 years, Reuters analysis shows.

Alan Johnson, senior executive at Nissan Motor’s Sunderland plant—the UK’s highest energy cost facility—said Make UK’s proposals would signal a stronger commitment to supporting electric vehicle manufacturing investment in the UK.

Attribution: Reuters
Subediting: M. S. Salama