Britain’s manufacturing sector warns of a potential wave of deindustrialisation unless ministers accelerate efforts to reduce industrial energy bills, as high electricity and gas costs threaten investment and competitiveness. Despite government schemes, industry advocates call for wider and quicker support to prevent further job and production losses.
Britain’s manufacturers are warning that the country risks a renewed wave of deindustrialisation unless ministers move faster to cut industrial energy bills, as pressure from high electricity and gas costs continues to bite.
Make UK said its latest survey shows the problem is already shaping corporate decisions: 9% of manufacturers responding said they had moved production overseas, while 16% were considering doing so. The industry body blamed persistently high power prices, saying they remain well above levels seen before the 2022 energy shock and continue to undermine investment, expansion and competitiveness. (theguardian.com)
The warning comes despite the Government’s April announcement that electricity bills will be cut by up to 25% for more than 10,000 manufacturers from April 2027 through the British Industrial Competitiveness Scheme. The scheme, which will exempt eligible firms from some policy costs, was expanded by 40% from its original scope of about 7,000 businesses, but Make UK has argued that the relief is still too narrow and too far away to stop near-term losses. (gov.uk)
Stephen Phipson, Make UK’s chief executive, said the sector could not wait for more consultations or delays, and called for the support to be widened to the whole manufacturing base. The organisation wants the scheme brought forward and extended to around 130,000 companies, rather than the current target of just over 10,000. (theguardian.com)
The trade body’s broader outlook is also gloomy. In its Q1 2026 Manufacturing Outlook, Make UK said domestic orders had fallen sharply, prices were rising at the fastest pace since 2023 and confidence had dropped for a third consecutive quarter, even though the sector is still expected to edge back to modest growth this year. EY has separately warned that energy price disruption could weigh heavily on heavy manufacturing over the coming years, with output in the sector projected to be 2.2% lower than in its previous baseline forecast. (makeuk.org)
That concern is echoed by wider industry analysis. A February report from the CBI and Energy UK said Britain’s industrial electricity prices were among the highest in the developed world and called for reforms to make the system more competitive. RSM, in its mid-year industrial review, said parts of manufacturing remained resilient, but that geopolitical shocks and energy costs were still eroding growth expectations. (theguardian.com)
For industrial decarbonisation leaders, the message is clear: the UK’s transition challenge is no longer only about cutting emissions, but about doing so without pricing energy-intensive production out of the country.
- https://eandt.theiet.org/2026/06/15/britain-faces-deindustrialisation-without-energy-bill-relief-says-make-uk – Please view link – unable to able to access data
- https://www.theguardian.com/business/2026/jun/15/britain-faces-deindustrialisation-relief-energy-prices-survey-make-uk – An article from The Guardian reports that Britain’s industrial sector is at risk of collapse due to high energy prices, with thousands of companies warning of potential bankruptcy within the next year. A survey by Make UK revealed that a quarter of manufacturing companies either planned to move production overseas or had already done so, while one in ten believed insolvency was likely within the next 12 months. The article highlights the urgent need for government intervention to address the escalating energy costs threatening the UK’s manufacturing base.
- https://www.makeuk.org/insights/reports/manufacturing-outlook-2026-q1 – Make UK’s Manufacturing Outlook Report for Q1 2026 indicates that UK manufacturing is facing challenges, including weakening domestic demand and rising costs. The report highlights that domestic orders have dropped sharply, leading to increased prices and decreased business confidence. Despite these challenges, the sector is expected to return to modest growth in 2026. The report emphasizes the need for government action to support the manufacturing sector amid these pressures.
- https://www.ey.com/en_uk/newsroom/2026/05/uk-gdp-growth-to-slow-2026-global-energy-supply-disruption – EY’s analysis projects that UK GDP growth will slow in 2026 due to global energy supply disruptions. The modelling examines the long-term impact of current energy price disruptions across UK sectors over a five-to-ten-year horizon, showing that heavy manufacturing and energy utilities are expected to be most affected, with output 2.2% and 1.8% lower, respectively, compared to previous forecasts. The analysis underscores the significant impact of energy price disruptions on the UK’s economic growth and industrial sectors.
- https://www.rsmuk.com/insights/advisory/uk-industrials-mid-year-review-2026 – RSM UK’s mid-year review for 2026 indicates that the UK manufacturing sector is facing renewed challenges due to geopolitical disruptions and energy price shocks. The report highlights a sharp drop in growth expectations and notes that parts of the manufacturing sector continue to show resilience, thanks to earlier order momentum and structural demand in sectors like defence and aerospace. The review emphasizes the need for manufacturers to adapt to cost pressures, operational disruptions, and weak demand to maintain competitiveness.
- https://www.gov.uk/government/news/government-cuts-electricity-bill-for-10000-manufacturers-in-boost-for-uk-competitiveness – The UK government has announced a reduction in electricity bills by up to 25% for over 10,000 businesses through the British Industrial Competitiveness Scheme. This initiative aims to support UK competitiveness by lowering energy costs for manufacturers, with the scheme set to take effect from April 2027. The government emphasizes that this measure will not lead to increases in household and business energy bills, highlighting its commitment to supporting the manufacturing sector amid rising energy costs.
- https://www.theguardian.com/business/2026/feb/22/high-energy-prices-threaten-uks-status-as-manufacturing-power-business-groups-say – A report by the CBI and Energy UK warns that high energy prices threaten the UK’s status as a major manufacturing centre, with about 40% of businesses having cut back investment due to elevated electricity costs. The report highlights that UK industrial energy prices are almost two-thirds above the median of International Energy Agency countries and the highest among G7 members. It calls for reforms to reduce prices and improve the efficiency of gas and electricity networks to prevent widespread deindustrialisation.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article references a recent survey by Make UK, published on 15 June 2026, highlighting concerns about high energy costs affecting UK manufacturers. ([theguardian.com](https://www.theguardian.com/business/2026/jun/15/britain-faces-deindustrialisation-relief-energy-prices-survey-make-uk?utm_source=openai)) The government’s announcement of the British Industrial Competitiveness Scheme (BICS) on 15 April 2026, which aims to cut electricity bills for over 10,000 manufacturers, is also mentioned. The information appears current and relevant, with no evidence of recycled content.
Quotes check
Score:
7
Notes:
Direct quotes from Stephen Phipson, CEO of Make UK, are included. ([theguardian.com](https://www.theguardian.com/business/2026/jun/15/britain-faces-deindustrialisation-relief-energy-prices-survey-make-uk?utm_source=openai)) However, the earliest known usage of these quotes cannot be independently verified, raising concerns about their originality. The Guardian article from 15 June 2026 is the primary source, but without access to the original survey or press release, the authenticity of the quotes remains uncertain.
Source reliability
Score:
8
Notes:
The primary source is The Guardian, a reputable UK newspaper. ([theguardian.com](https://www.theguardian.com/business/2026/jun/15/britain-faces-deindustrialisation-relief-energy-prices-survey-make-uk?utm_source=openai)) The secondary sources include official government publications and industry reports. However, the reliance on a single news outlet for the quotes and the lack of direct access to the original survey or press release from Make UK limit the ability to independently verify the information.
Plausibility check
Score:
7
Notes:
The claims about high energy costs impacting UK manufacturers are plausible, given the context of rising global energy prices. The government’s BICS initiative, announced in April 2026, aims to address these concerns. However, the lack of direct access to the original survey data and the reliance on a single news outlet for quotes raise questions about the comprehensiveness and accuracy of the reported findings.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
While the article addresses a timely and plausible issue regarding the impact of high energy costs on UK manufacturers, the inability to independently verify the quotes and the reliance on a single news outlet for critical information significantly undermine its credibility. The lack of direct access to the original survey data from Make UK further complicates verification efforts.
