High energy costs threaten UK manufacturing’s future, industry warns

Onshore wind turbines at Little Cheyne Court Wind Farm operate beside electricity pylons in Dungeness, Britain. (Reuters/File)
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Updated 02 June 2025
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High energy costs threaten UK manufacturing’s future, industry warns

  • Manufacturing association Make UK said it should cancel climate levies imposed on industrial energy costs and adopt a fixed industrial energy price

MANCHESTER, England: Britain needs to cut industrial energy bills that are the highest among major advanced economies if its aspirations for a healthy manufacturing sector are to succeed, industry body Make UK said on Monday.
Prime Minister Keir Starmer’s government is working on an industrial strategy to put British manufacturing — hit hard by Brexit, soaring energy costs and global trade wars — on a solid footing for the years ahead.
Manufacturing association Make UK said it should cancel climate levies imposed on industrial energy costs and adopt a fixed industrial energy price.
Britain had the highest industrial energy prices out of any International Energy Agency member country in 2023, reflecting its dependence on gas and its role in setting electricity prices.
“If we do not address the issue of high industrial energy costs in the UK as a priority, we risk the security of our country,” Make UK chief executive officer Stephen Phipson said.
“We will fail to attract investment in the manufacturing sector and will rapidly enter a phase of renewed de-industrialization.”
Britain has de-industrialized — defined as the share of manufacturing in overall economic output — faster than in any other major European country over the last 30 years, according to a Reuters analysis of national accounts data.
Manufacturing hit a record low 9 percent of economic output last year, crowded out by the dominant services sector which now drives the majority of the country’s exports — a first among Group of Seven advanced economies.
Alan Johnson, a senior executive for manufacturing, supply chain and purchasing at Nissan Motor, said its Sunderland plant in the north east of England had the highest energy costs out of any of its facilities in the world.
“The proposals being put forward by Make UK ... would send a strong message to investors that the UK remains committed to creating a more competitive environment for electric vehicle manufacturing,” Johnson said.


Treason trial of South Sudan’s suspended VP is further eroding peace deal, UN experts say

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Treason trial of South Sudan’s suspended VP is further eroding peace deal, UN experts say

  • The experts said forces from both sides are continuing to confront each other across much of the country
  • “Years of neglect have fragmented government and opposition forces alike,” the experts said

UNITED NATIONS: The treason trial of South Sudan’s suspended vice president is further eroding a 2018 peace agreement he signed with President Salva Kiir, UN experts warned in a new report.
As Riek Machar’s trial is taking place in the capital, Juba, the experts said forces from both sides are continuing to confront each other across much of the country and there is a threat of renewed major conflict.
UN peacekeeping chief Jean-Pierre Lacroix told the UN Security Council last month that the crisis in South Sudan is escalating, “a breaking point” has become visible, and time is running “dangerously short” to bring the peace process back on track.
There were high hopes when oil-rich South Sudan gained independence from Sudan in 2011 after a long conflict, but the country slid into a civil war in December 2013 largely based on ethnic divisions, when forces loyal to Kiir, an ethnic Dinka, battled those loyal to Machar, an ethnic Nuer.
More than 400,000 people were killed in the war, which ended with the 2018 peace agreement that brought Kiir and Machar together in a government of national unity. But implementation has been slow, and a long-delayed presidential election is now scheduled for December 2026.
The panel of UN experts stressed in a report this week that the political and security landscape in South Sudan looks very different today than it did in 2018 and that “the conflict that now threatens looks much different to those that came before.”
“Years of neglect have fragmented government and opposition forces alike,” the experts said, “resulting in a patchwork of uniformed soldiers, defectors and armed community defense groups that are increasingly preoccupied by local struggles and often unenthused by the prospect of a national confrontation. ”
With limited supplies and low morale, South Sudan’s military has relied increasingly on aerial bombings that are “relatively indiscriminate” to disrupt the opposition, the experts said.
In a major escalation of tensions in March, a Nuer militia seized an army garrison. Kiir’s government responded, charging Machar and seven other opposition figures with treason, murder, terrorism and other crimes.
The UN experts said Kiir and his allies insist that, despite having dismissed Machar, implementation of the peace agreement is unaffected, pointing to a faction of the opposition led by Stephen Par Kuol that is still engaged in the peace process.
Those who refused to join Kuol and sided with Machar’s former deputy, Natheniel Oyet, “have largely been removed from their positions, forcing many to flee the country,” the experts said in the report.
The African Union, regional countries and the Intergovernmental Authority on Development, or IGAD, have all called for Machar’s release and stressed their strong support for implementation of the 2018 agreement, the panel said.
According to the latest international assessment, 7.7 million people — 57 percent of the population — face “crisis” levels of food insecurity, with pockets of famine in some communities most affected by renewed fighting, the panel said.