The EEF, the Manufacturers Organisation, has laid bare the effect high energy prices are having on UK industry and the impact that a projected 50% rise in electricity prices by 2020 will have.
The EEF’s research claims:
- 25% of manufacturers would have to reconsider overseas investment
- 73% say the projected rise would have “a noticeable impact on profit margins”
- 53% believed it would hit their competitiveness.
- Whilst 34% would be forced to cut spending in other areas of their business
- Only 19% of businesses believed the UK’s schemes offered the right incentives for energy efficiency
Announcing the results of their survey EEF Head of Climate and Environment Policy Gareth Stace said:
“This is a wake-up call that the tension between the pursuit of low carbon policies and Britain’s ambitions for a better-balanced economy must be resolved. Failure to do so could hit investment, margins and competitiveness, putting the brakes on growth and leaving our economy stuck in the slow lane.
“High energy costs are crippling for manufacturers of all sizes”
Ouch.