High energy prices threaten UK’s status as manufacturing power, business groups say

The Guardian - World NewsCenter-LeftEN 3 min read 100% complete by Phillip InmanFebruary 22, 2026 at 08:00 AM

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medium article 3 min

A report by the CBI and Energy UK warns that high energy prices are threatening the UK's manufacturing sector. The report states that nearly 90% of UK firms have seen energy bills rise in the last five years, leading 40% to cut back on investment. Business electricity costs are 70% higher than before Russia's invasion of Ukraine, and gas prices are 60% higher. The groups urge the government to review energy regulations, upgrade infrastructure, and collaborate with industry to reduce prices and improve efficiency. They warn that without intervention, the UK risks job losses, production cuts, plant closures, and deindustrialization, as the UK has some of the highest industrial energy prices among developed nations.

Key Entities & Roles

Key Player Opposition Context

G7 30% Louise Hellem 40% International Energy Agency (IEA) 40% Office for National Statistics 50% Make UK 50% Russia 60% Ukraine 60% CBI ×380% Energy UK ×380% UK ×890%

Keywords

high energy prices 100% manufacturing 90% uk economy 80% energy bills 70% investment 70% gas and electricity networks 60% deindustrialisation 60% trade deficit 50% net zero 50% energy policy 40%