Groups warn of job losses due to energy costs in the UK

The UK is losing manufacturing jobs abroad and is at risk of losing important industrial sectors due to high energy costs, a manufacturing sector group and a trade union warned on Monday (15), urging the government to do more to reduce company bills.

Under an industrial strategy launched a year ago, Britain promised to reduce electricity costs for energy-intensive industries by exempting them from certain environmental taxes, and has since said the program will be expanded and have retroactive effect.

But industry group Make UK said a survey of its members showed that more than half of companies saw no benefit from the strategy, while a quarter of them have moved production overseas or are considering doing so.

"Britain faces deindustrialization unless manufacturers receive relief from high energy prices," said Stephen Phipson, chief executive of Make UK, calling for the program to be expanded across the industry and implemented more quickly.

"We cannot afford to be delayed by political turmoil or further consultation. For the sake of thousands of jobs across Britain, the government needs to step in and act now."

Prime Minister Keir Starmer faces discontent among his Labor MPs after a series of position changes and resignations. Some back Greater Manchester Mayor Andy Burnham for a possible leadership contest if he returns to parliament in a special election this week.

The war with Iran has raised energy prices for homes and businesses, increasing pressure on Starmer as a range of other pressures - from defense to social welfare - strain public finances.

Phipson said extending the program to all companies in the sector would cost £3 billion ($4 billion) a year and save 2.5 million jobs.

The Trades Union Congress supported the call for more aid, with general secretary Paul Nowak saying the program should be expanded to "protect jobs and keep factories and mills running."

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Source: CNN