According to the findings of recent research, the current state of the energy market is compelling manufacturers to reevaluate their production levels or consider going out of business entirely.
According to the findings of the study conducted by Make UK, businesses are sounding the alarm that their energy prices have already “spiraled out of control.”
Approximately fifty percent of the two hundred businesses that were polled said that their monthly electricity costs had increased by more than one hundred percent in the preceding year, and approximately fifty percent anticipate that this trend would continue in the following year.
About one in eight of those polled stated that they have already reduced the number of employees they employ as a direct result of rising energy costs, and they admitted that even more drastic action, such as complete shutdowns and wider redundancies, will be required if the anticipated price hikes occur within the next twelve months.
The new government needs to take urgent action in light of the fact that a growing number of manufacturers are now in survival mode and are resorting to extreme measures such as job cuts.
According to Make UK, which is an organization that represents manufacturers in the United Kingdom, the nation is falling behind EU counterparts that are offering more emergency assistance for industry. One example of this would be the Italian government lowering levies on gas and electricity bills as well as reducing VAT for industries that use a lot of energy.
“As energy prices spiral out of control, manufacturers are working relentlessly to find methods to reduce usage,” said Stephen Phipson, chief executive of Make UK. “They are putting in place as much as they can afford in terms of building upgrades and deploying renewable sources of energy.”
“The government needs to get involved to assist companies that are failing.
“Emergency action is required by the next government as soon as they are inside No. 10, given that a growing number of manufacturers are now in survival mode and taking dramatic measures such as slashing jobs.
“We are already falling further and further behind our global competitors, and the UK Government’s protracted inaction is making this situation much more dire.
“Manufacturing in the United Kingdom needs assistance right now if it is to thrive and maintain the millions of well-paid jobs across the entirety of the United Kingdom. This assistance is also necessary for the United Kingdom to maintain its position as one of the world’s great manufacturing nations.”
“No national government can influence the global causes pushing up the price of energy, but we will continue to support business in navigating the months ahead,” said a representative for the government.
In the past few years, we have contributed more than two billion pounds to the industrial sector in order to assist with the rising cost of energy. In addition, we recently announced intentions to exempt industries from some green energy tariffs and doubled the budget of our power assistance scheme. Both of these initiatives were recently implemented.
“We have also lowered taxes for hundreds of thousands of businesses by boosting the Employment Allowance, which decreases national insurance contributions, and by lowering fuel duty,” the government said.
“On top of that, we’ve placed the brakes on bill increases by freezing the business rates multiplier, which is worth £4.6 billion over the next five years,” said the government. “This will prevent bill increases from occurring.”