A stark new report from the CBI and Energy UK warns that the UK risks losing its position as a major global manufacturing hub, with 40% of businesses forced to scale back investment due to persistently high energy prices. Electricity costs for British businesses remain 70% above pre-Ukraine war levels, while gas prices sit 60% higher, leaving the UK with the most expensive industrial energy among G7 nations.
Without urgent reforms to cap prices and modernize the aging grid, industry groups caution that the risk of plant closures, job losses, and offshoring will rapidly increase. The fallout is already hitting hard — energy-heavy industries like chemicals are shutting down plants, and the country just posted its worst-ever trade deficit in goods at £248.3bn. Leaders are calling for a fundamental review of outmoded energy market regulations to protect the supply chain and restore competitiveness during the net-zero transition.
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