Cut industrial energy costs or risk de-industrialisation - report

Make UK said an ambitious and effective industrial strategy is essential to ensuring the UK remains competitive, secure, and economically productive in the coming years.

For that strategy to make the impact required by manufacturers it should address industrial energy prices, which Make UK said are four times those in the US and 46 per cent above the global average.

A new Make UK report titled Tackling Industrial Energy Costs sets out solutions which the government should place at the centre of the strategy, which are deliverable and costed. In particular, it urges government to reform the policy levies that make low-carbon energy more expensive than fossil fuels.

These policy levies apply to UK industrial bills but not across the rest of Europe. Making this change would cut energy costs by 15 per cent immediately. If coupled with an agreed fixed energy price for Britain’s manufacturers, the resulting cost reduction would be significant.