CBI and Energy UK report finds 40% of firms have cut investment as electricity costs remain far above pre-Ukraine levels
The UK is at risk of losing its status as a major manufacturing centre after a sharp rise in energy prices that has forced about 40% of businesses to cut back investment, according to a report by the CBI and Energy UK.
In a stinging message to ministers, the report said British businesses – from chemical producers to pubs and restaurants – were being undermined by a failure to cap prices and upgrade the UK’s ageing gas and electricity networks.
A far-reaching review of outmoded regulations that govern the sale and supply of energy is also needed to spur investment and boost economic growth, the report said.
Energy UK, which represents more than 100 electricity generators and retailers, said business electricity costs remained 70% higher than before Russia’s invasion of Ukraine, while gas prices were 60% higher.
