Britain is losing manufacturing jobs abroad and risks the loss of major industries due to soaring energy costs, industry groups said today [1, 2].
The UK government launched an industrial strategy in June 2025 aiming to reduce electricity costs for energy-intensive industries by exempting them from some green levies [1, 2]. However, more than half of firms surveyed by Make UK report seeing no benefits from the strategy, and about a quarter have moved or are considering moving production overseas [1, 2].
Make UK chief executive Stephen Phipson said, "Britain faces deindustrialisation unless manufacturers get relief from high energy prices," calling for the energy cost relief scheme to be expanded to cover the entire manufacturing sector and rolled out more quickly [1].
Extending the scheme to all manufacturers is estimated to cost £3 billion annually but could save 2.5 million jobs, according to Make UK [1, 2]. Paul Nowak of the Trades Union Congress supported expanding the scheme to "protect jobs and keep factories and plants running" [1].
Rising energy prices, driven in part by the ongoing war in Iran, have added significant pressure on UK businesses and households. This economic strain poses a growing challenge for Prime Minister Keir Starmer amid rising political discontent [1, 2].
On June 15, 2026, Make UK and the TUC publicly warned about the ongoing risk of job losses abroad due to high energy costs and urged urgent government action to prevent further industrial decline [1, 2].
The government is now facing growing calls to broaden the electricity cost relief scheme beyond the current limited beneficiaries to include all manufacturing firms. The next major policy update is expected in the coming months as lobbyists and unions continue to press for faster and wider support.
