Rising energy expenses pose a risk to the future of manufacturing in the UK.

Britain must reduce its industrial energy costs, which are the highest among major advanced economies, to support a robust manufacturing sector, according to Make UK.

Prime Minister Keir Starmer's administration is developing an industrial strategy aimed at stabilizing British manufacturing, which has been heavily impacted by Brexit, rising energy prices, and global trade disputes. Make UK advocates for the removal of climate levies on industrial energy and the establishment of a fixed industrial energy price.

In 2023, Britain had the highest industrial energy prices of any International Energy Agency member, attributed to its reliance on gas and its influence on electricity pricing. Make UK CEO Stephen Phipson warned that failing to prioritize high industrial energy costs could jeopardize national security and deter investment in manufacturing, leading to further de-industrialization.

Over the past 30 years, Britain has experienced faster de-industrialization than any other major European nation, with manufacturing's share of economic output falling to a record low of 9%, overshadowed by the services sector which now dominates exports. Alan Johnson, a senior executive at Nissan, noted that the Sunderland plant faces the highest energy costs among its global facilities. He added that Make UK's proposals would reassure investors about the UK's commitment to fostering a competitive electric vehicle manufacturing environment.