Energy security delays could push manufacturers to the brink, warns Make UK
Iran crisis could be last straw for industry if Government delays progress on UK oil and energy security
13.03.2026
Manufacturers across the UK are already suffering with a “pile up” of commercial burdens, from hefty employment costs to rising business rates, and blockages of oil and ferrous supplies in Iran’s Strait of Hormuz could be the last straw for some businesses.
Make UK is pressing the Government to move quickly to secure energy prices, and to progress the Rosebank and Jackdaw developments - to help safeguard energy security and mitigate rising energy costs. The effective closure of the Strait of Hormuz has restricted oil and gas exports from the Middle East, prompting sharp price spikes. Oil surged to $118 - a six-year high - while UK gas prices soared last week, driven by major shutdowns at Qatari LNG terminals.
While 83% of manufacturers intend to invest in renewables, power supply uncertainties today are weighing them down. Industrial power prices in the UK are already the highest in the European continent, four times higher than in the US and 46% above the global average. Even accounting for the British Industrial Supercharger (BIS), the average price faced by UK energy intensive industries for 2024/25 is £66/MWh compared to the estimated German prices of £50/MWh and French prices of £43/MWh.
The new British Industrial Competitiveness Scheme (BICS) is expected to be rolled out in April 2027 to just 7,000 companies – Make UK argues it must be fairly rolled out in 2026 to all manufacturers to protect those impacted by expected bill rises.
Manufacturers are calling for the government to act quickly to progress with the Rosebank and Jackdaw developments to mitigate energy costs and energy security because of the conflict in the Middle East. Historically high industrial energy costs are already preventing growth in UK manufacturing.
"The recent developments in the Middle East add huge pressures to the sector and risk accelerating de-industrialisation. Whilst manufacturers are leading the way in renewable energy we must ensure the sector survives in the medium term. Ensuring the UK has access to its own energy reserves is now vital.
