Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Labour warned more industries could need British steel-style rescue amid soaring energy costs

by April 14, 2025
April 14, 2025
Labour warned more industries could need British steel-style rescue amid soaring energy costs

The government is facing fresh calls to take urgent action on Britain’s soaring industrial energy costs, as leading industry bodies warn that more manufacturers could face collapse unless electricity prices are brought in line with European competitors.

In a joint letter to Chancellor Rachel Reeves, the Trades Union Congress (TUC) and Make UK, the manufacturers’ organisation, said that unless action is taken soon, ministers may be forced to repeat emergency interventions such as the recent British Steel rescue.

They warned that steelmakers, chemical producers and other energy-intensive sectors are being pushed to the brink by “exorbitant electricity prices”, placing them at a “competitive disadvantage” compared with rivals in countries like Germany and France.

According to figures from UK Steel, British producers will pay an average of £65.97 per megawatt-hour (MWh) for electricity this year — compared with £49.50 in Germany and £43.49 in France.

“The government has committed to ensuring Britain is open for business and pulling down barriers to investment,” the letter said. “If it is serious about this, it must publish a plan to deliver industrial electricity prices that are competitive with our European peers.”

The warning comes just weeks after ministers stepped in to support British Steel, whose plans to transition from coal-fired blast furnaces to greener electric arc furnace (EAF) technology had been hampered by the UK’s high electricity costs.

Critics of the UK’s green policy framework argue that environmental levies and grid charges are inflating costs for domestic manufacturers. In the UK, grid connection fees are significantly higher than in many EU countries.

Sir Jim Ratcliffe, the billionaire founder of Ineos, has repeatedly blamed UK energy policy for “enormously high energy prices and crippling carbon tax bills”. Earlier this year, Ineos shut down its synthetic ethanol plant at Grangemouth, citing “uncompetitive” energy costs.

Speaking to Times Radio on Sunday, Business Secretary Jonathan Reynolds said Britain’s electricity prices remain higher than in many European countries because they are still heavily influenced by volatile gas prices.

“What is crippling us is our exposure to the volatility of fossil fuels and gas prices,” Reynolds said. “If the price of wind set electricity prices most days, it would be a far better situation.”

He added that the government is working on this issue as part of its industrial strategy review.

While the UK’s manufacturing sector has shrunk as a share of the economy in recent decades, it still contributes £217 billion a year to GDP and supports 2.6 million jobs, according to Make UK.

“Without urgent reforms to reduce energy prices, a thriving, internationally competitive manufacturing base in the UK will simply not be possible,” the TUC and Make UK warned.

They are calling for the chancellor to implement immediate relief measures for large “electro-intensive” manufacturers and to outline a clear long-term plan to lower energy costs for all UK industrial sectors.

With inflation easing and a new government signalling a fresh approach to industrial strategy, business leaders are now pressing for decisive action — before more firms are pushed to the edge.

Read more:
Labour warned more industries could need British steel-style rescue amid soaring energy costs

0
FacebookTwitterGoogle +Pinterest
previous post
Retail, hospitality and leisure sectors face fresh uncertainty amid Trump tariff chaos
next post
Fire and rehire: the risks and alternatives

You may also like

Twitter to let publishers charge users per article...

May 1, 2023

New Regulations on Holiday Lets Set to Tackle...

February 19, 2024

UK and EU climate change strategy will see...

January 3, 2024

Impending tax hike looms for Americans in the...

July 8, 2024

Private equity firm in talks to buy collapsed...

February 2, 2023

CBI prepares comeback after misconduct scandal

July 30, 2023

The Hollywood effect: Wrexham lines up three-hour direct...

March 14, 2024

Virgin Atlantic tempts British Airways Executive Club Members...

February 11, 2024

Fed rate cut looms after Powell’s Jackson Hole...

August 22, 2025

Warm Weather Boosts UK Economy in June

August 11, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Gen Z workers turn back to office jobs to combat loneliness

      August 25, 2025
    • US jobs market faces ‘Trump slump’ as tariffs and cuts hit growth

      August 25, 2025
    • Royal Mail and DHL suspend US parcel deliveries as Trump tariffs take effect

      August 25, 2025
    • Farmers warn of crisis as poll shows 80% fear for survival and none back Labour

      August 25, 2025
    • TikTok cuts threaten hundreds of UK content moderator jobs amid AI shift

      August 25, 2025
    • Hospitality hit hardest as nearly 90,000 jobs lost after budget tax rises

      August 25, 2025

    Categories

    • Business (8,874)
    • Investing (2,235)
    • Politics (16,476)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved