Business groups and unions have issued a joint call for the UK government to tackle spiralling electricity prices, warning that domestic industry faces a long-term competitiveness crisis unless action is taken.
The Trades Union Congress (TUC) and manufacturers’ organisation Make UK have both urged Chancellor Rachel Reeves to provide targeted support for energy-intensive industries. Steelmakers in particular face electricity costs that are up to 60% higher than those paid by competitors in Germany and France, according to industry estimates.
The warning comes as British Steel’s future remains in flux, with its Scunthorpe plant narrowly avoiding closure thanks to last-minute government intervention. Stakeholders say the underlying issue — structurally high UK industrial energy prices — remains unaddressed.
Speaking to The Times, Make UK’s CEO Stephen Phipson described the UK’s industrial energy burden as “untenable” and said that without a strategic response, further plant closures were likely. He called for reforms to network charges, more flexible carbon pricing, and investment in energy efficiency across the manufacturing sector.
While the government has introduced various schemes to support business energy bills, critics say these are short-term in nature and fail to match the scale of support seen elsewhere in Europe.
With the UK seeking to rebuild its industrial base, business leaders argue that competitive energy pricing must become a cornerstone of economic policy — not an afterthought.
