Cuts to energy costs need to go further

We’ve backed calls from an influential pressure group for the government to slash energy costs for business.

We’re throwing our weight behind a report by the Jobs Foundation charity warning that soaring energy prices are placing thousands of high-quality jobs at risk and holding back the UK’s long-term economic competitiveness.

The Foundation called for action in ‘Jobs and Energy: The effect of high costs on the UK jobs market’ which was timed to co-incide with the government’s publication of its long-awaited industrial strategy.

REIDsteel is a member of the foundation’s business council and our managing director Simon Boyd is a trustee.

Simon stated in the report: “The impact of persistently high energy costs is doing untold damage to British businesses.

“It goes far beyond our heavy industries like steel and chemical plants which are at the core of UK manufacturing.

“The result; limited financial resources for businesses to invest in new technologies, upskilling, growth plans and future employment.

“If we don’t get serious about tackling the cost of energy, we won’t just lose industries, we’ll lose the chain of businesses that sustain our economy.”

The Jobs Foundation gave the first analysis of its kind identifying where in the UK jobs are most at threat because of the high cost of energy and warned that Labour MPs seats are in danger at the next election.

Its report highlights that UK industrial electricity prices are among the highest in the developed world – more than 46% above the average of comparator nations. For large users, this premium rises to over 100%, placing British firms at a significant disadvantage in global markets.

The government’s new 10-year industrial strategy included measures to reduce electricity costs for 7,000 energy intensive business through a new ‘British Industrial Competitiveness Scheme’ which will exempt companies from paying various green levies but will not come into force until 2027 after a consultation.

About 500 of the most energy-intensive firms will also have their network charges cut through an increased discount in the British Industry Supercharger scheme from 60% to 90% from 2026 onwards.

Simon said: “These measures are a tacit admission of the failure of the government’s nonsensical and ill-conceived race to net zero policy.

“While measures to reduce electricity costs may be welcome for energy intensive businesses, the government needs to get to the root of the problem as a matter of urgency.

“That includes immediately abandoning its completely unsustainable race to net zero targets and instead taking a more measured approach which will support our industrial base and help it grow while allowing our country to pursue cleaner energy aspirations in a much more realistic, cost-effective and efficient way.”

Earlier this year we launched a Save British Steel campaign to keep steel blast furnaces open in Scunthorpe.

We use British Steel in our design, manufacture and erection of steel structures, including bridges, aircraft hangars and airports, around the world.

The Jobs Foundation is a charity (1202928) set up to champion the role of business as a force for good, supporting the crucial role companies play giving people a step up in life by providing jobs and training opportunities.

It is a non-partisan organisation led by president Matthew Elliott and chief executive Georgiana Bristol.



Visit https://thejobsfoundation.com/jobs-and-energy-the-effect-of-high-energy-costs-on-the-uk-jobs-market/ to read the Jobs Foundation report.