Manufacturers Say the UK is Becoming Less Appealing as a Place to Invest

UK Manufacturing
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In a poll of the manufacturing sector that was issued on Monday, respondents claimed that as a consequence of recent political unrest and rising energy prices, the United Kingdom has become less competitive and less appealing to investors from other countries.

According to a survey conducted by Make UK, the primary trade body for British manufacturers, and accountants PwC, the percentage of manufacturers who believe that Britain is a competitive location has decreased to 31%, down from 63% a year ago. Furthermore, 43% of manufacturers said that Britain had become less attractive to overseas investors.

The study of 235 companies took taken from November 1st to November 22nd, at a time when the upheaval of Liz Truss’s short-lived government was still vivid in people’s minds. Of those surveyed, 53% of businesses felt that continuous political uncertainty has hurt business confidence.

This week, Finance Minister Jeremy Hunt is expected to discuss measures to significantly reduce the amount of money companies get for energy subsidies.

According to Make UK, these proposals will very certainly lead to an acceleration of job losses and production reductions that were already in the works.

When the study was conducted in November, two thirds of firms anticipated that rising energy prices would drive them to decrease the number of employees or the amount of product they produced.

Manufacturers in Britain have been having a difficult time as of late, with highly monitored company surveys conducted by S&P Global indicating that they experienced a more severe decline in December than their colleagues in other Group of Seven nations.

According to Stephen Phipson, chief executive of Make UK, “the year ahead is going to be extremely hard for manufacturers with a powerful combination of elements testing their resolve.” “The year ahead will be very demanding for manufacturers.”

“An ongoing interruption in supply chain operations, availability to labor, and high transit costs that show no indication of abating may be coupled to a rising feeling of economic and political insecurity in their primary markets,”

Phipson stated that there was a significant risk that British manufacturers would “fall through the cracks” if the government failed to match the generosity of energy bill support programs that Britain’s competitors have in place. Specifically, Phipson stated that there was a risk that British manufacturers would “lose out.”

According to a story in the Daily Telegraph published on Friday, the government’s intentions to reduce energy subsidies for companies would result in a reduction of 85% in the cost of assistance for the next fiscal year, bringing the total cost to a maximum of 5 billion pounds ($6 billion).

 

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