Soaring electricity bills set to drive manufacturers out of business
Some 60% of factories in the UK are at serious risk of closing as energy bills across the country continue to soar, Bloomberg reported on Saturday, citing a poll by MakeUK, a lobby group for UK factories. .
Almost half of manufacturers have seen their electricity bills rise by more than 100% in the past year, according to the lobby group.
“The current crisis places companies in front of a difficult choice”, MakeUK said. “Cut back production or shut down the shop completely if help doesn’t arrive soon.”
UK authorities have come under intense pressure over the past year to deal with the energy crisis, with several rounds of support measures unveiled to help consumers and businesses cope with soaring costs .
According to a Purchasing Managers Index published by S&P Global, the country’s manufacturing sector is already in decline. Meanwhile, the MakeUK survey shows 13% of factories have reduced operating hours or are avoiding peak periods, with 7% halting production for longer periods.
READ MORE: Britons most affected by energy crisis in Western Europe – IMF
“The new government needs urgent action” Stephen Phipson, chief executive of MakeUK, told Bloomberg. “We are already behind our global competitors.”
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