An industry survey found that nearly two-thirds of British manufacturers are concerned about winter blackouts as a result of the energy crisis. Additionally, concerns are growing about the government’s plans to reduce financial support for businesses.
The trade group Make UK stated that the impact of sky-high energy costs on manufacturers showed no sign of abating as the chancellor, Jeremy Hunt, prepared to announce a sharp reduction in industry support.
According to the industry group, which represents 20,000 manufacturers in the United Kingdom, reducing financial support would worsen job losses and reduce factory output, which would be detrimental to the economy.
This week, Hunt is expected to announce a package of measures to assist businesses struggling with high energy costs. Among these measures is the extension of a program beyond its March expiration date.
However, the chancellor stated that the current measures would be replaced at a lower level due to their excessive cost. MakeUK and the accounting firm PwC conducted a survey of more than 200 senior managers in the manufacturing industry. The results showed that almost three-quarters of businesses, and 70 percent estimate that their energy costs will rise this year, and two-thirds of those businesses said they plan to reduce production or the number of jobs they have.
Employers also indicated plans to halt recruitment in the most recent business surveys conducted by the accounting and business advisory firm BDO, citing concerns about a recession and pressures on supply chains and high inflation.
Make UK found that as many as 60% of bosses were becoming more concerned about how blackouts would affect their company, and almost 65 percent said that higher energy costs were the biggest threat to their business. More than one in ten have thought about moving production to another country where energy costs are lower, and more than 13% have specifically considered closing the business or implementing shutdowns.
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