Soaring electricity bills are projected to drive manufacturers out of business
Some 60% of factories in the UK are at severe risk of shutting down as energy bills across the nation continue to skyrocket, Bloomberg reported on Saturday, citing a poll conducted by MakeUK, a lobby group for British factories.
Nearly half of manufacturers have seen electricity bills surge by more than 100% over the past year, according to the lobby group.
“The current crisis is leaving businesses facing a stark choice,” MakeUK said. “Cut production or shut up shop altogether if help does not come soon.”
UK authorities have been under intense pressure over the past year to tackle the energy crisis, with several rounds of support measures unveiled to help consumers and businesses cope with surging costs.
According to a purchasing managers’ index published by S&P Global, the country’s factory sector is already in decline. Meanwhile, MakeUK’s survey shows that 13% of factories have reduced their operating hours or are avoiding peak periods, with 7% halting production for longer stretches.
“Emergency action is needed by the new government,” Stephen Phipson, MakeUK’s chief executive officer, told Bloomberg. “We are already lagging behind our global competitors.”