UK becoming less attractive for investment, manufacturers warn

LONDON (Reuters) – Rising energy costs and recent political turmoil have made the UK less competitive and less attractive to foreign investors, manufacturers said in an industry survey released on Monday. Stated.

A survey by Make UK, the UK’s leading trade body for manufacturers, found that the proportion of manufacturers who consider the UK to be a competitive location has halved to 31% from 63% a year ago. 43% say the UK is no longer attractive to foreign investors. , Accountant PwC.

The 235 companies surveyed ran from November 1st to November 22nd, a time when the turmoil of the Liz Truss administration was still fresh in people’s minds. Fifty-three percent of businesses say the ongoing political unrest has damaged business confidence.

Finance Minister Jeremy Hunt is due to outline plans this week to significantly reduce energy subsidies to businesses.

Make UK said the plan was likely to exacerbate job and production cuts already in the pipeline.

When the survey was conducted in November, two-thirds of manufacturers expected to cut jobs or reduce production due to high energy costs.

UK manufacturers have been struggling lately, with a close watch on S&P Global’s business survey showing they suffered a deeper recession in December than the other group of seven countries.

Stephen Phipson, CEO of Make UK, said:

“Ongoing supply chain disruptions, access to labor and rising transportation costs are likely to add to the growing economic and political uncertainty in key markets.”

Phipson said there was a significant risk that British manufacturers would “fail” if the government failed to respond to the generosity of the energy bill support programs implemented by UK competitors.

The government plans to cut energy subsidies to businesses, cutting support costs by 85% over the next financial year and limiting costs to £5bn ($6bn), the Daily Telegraph reports. reported on Friday.

Reporting by Andy Bruce.Editing by David Milliken

Our standards: Thomson Reuters Trust Principles.

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