60% of British Manufacturers Run the Risk of Shutting Down
According to a report by Thomas Brooke of Remix News, roughly 60% of British manufacturing enterprises run the risk of closing.
Brooke cited a survey by MakeUK, a manufacturing lobby organization in the United Kingdom for this data point.
MakeUK called attention to skyrocketing energy bills and the broader cost-of-living crisis as some of the key factors behind the looming closures in the manufacturing sector.
On September 3, 2022, MakeUK revealed that 42% of manufacturers have witnessed their electricity bills grow by 100% in the past 12 months, and 32% have seen their gas bill increase twofold.
These rising prices have compelled 13% of manufacturers to slash their hours of operation, with another 12% having been compelled to lay people off due to the swelling energy bills.
The majority of businesses fear that if bills continue rising well into the end of 2022 and grow by north of 50% as some are projecting, business shutdowns “will become inevitable.”
On September 5, the manufacturing lobby organization put forward a 100-day plan for Liz Truss, the newly appointed prime minister.
Brooke listed off several of the plans key points:
“It includes a call for an emergency budget; a demand to commission the Migration Advisory Committee (MAC) to review the Shortage Occupation List (SOL), which outlines key job roles in high demand in the U.K. to allow businesses to recruit from overseas more easily; and an overhaul of the Apprenticeship Levy ‘to ensure British people are among the most productive and highly skilled workers in the world.’”
BLP previously reported that inflation could reach 22% in the UK if energy prices continue climbing upwards as some experts are projecting.
Britain’s misguided energy policies combined with its fanatic commitment to sanctioning Russia to the last British citizen with 5 pounds in their pocket has generated an unprecedented energy crisis that will impoverish countless British citizens.
Hopefully, cooler minds prevail in Old Blighty and the country reconsiders its green energy and sanctions policies. These reforms are key to bringing back economic normalcy to the UK.