Manufacturers warn UK becoming less attractive for investment

© Reuters. Workers adjust a shipment of new galvanized street lights inside the Corbetts The Galvanizers factory in Telford, England, June 28, 2022. REUTERS/Phil Noble/File Photo

By Andy Bruce

LONDON (Reuters) – Britain has become less competitive and less attractive to foreign investors due to rising energy costs and recent political turmoil, manufacturers said in a press conference. Industry survey released on Monday.

According to a survey by Make UK, the main trade body for British manufacturers, the percentage of manufacturers who consider the UK a competitive location has halved to 31% from 63% a year ago and 43% think the UK has become less attractive to foreign investors. , and accounting PwC.

The survey of 235 businesses took place from November 1 to November 22, when the short-lived government turmoil by Liz Truss was fresh in the minds of people and 53% of businesses. said the ongoing political turmoil has damaged business confidence.

This week, finance minister Jeremy Hunt will outline a plan to drastically reduce energy subsidies for businesses.

Make UK says these plans are likely to lead to further job cuts and production is poised.

When the survey took place in November, two-thirds of manufacturers expected to reduce headcount or cut output because of high energy costs.

Recently, UK manufacturers have struggled with a closely watched business survey by S&P Global (NYSE: NYSE) that showed they suffered a more severe downturn in December than other companies. other countries in the Group of Seven.

Stephen Phipson, chief executive of Make UK, said: “Next year will be difficult for producers with many factors testing their resolve.

“Ongoing supply chain disruptions, labor accessibility and high transportation costs that show no signs of abating could increase feelings of economic and political uncertainty in key markets of the United States.” surname.”

Phipson said there was a significant risk that UK manufacturers would “fall into a trap” if the government was unable to meet the generosity of energy bill support schemes that its competitors have offered. You are applying.

Government plans to scale back energy subsidies for businesses will see support costs fall by 85 per cent next financial year, capping costs to £5 billion ($6 billion) , the Daily Telegraph reported on Friday.

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