Make UK responds to Prime Minister's Labour Party Conference Speech
Make UK has welcomed the Prime Minister’s announcement of a new Great British Grid, but warned that manufacturers need more immediate action to tackle the UK’s high industrial energy costs.
Speaking at Labour Party Conference, Prime Minister Andy Burnham announced plans for a new publicly owned Great British Grid, with the aim of increasing competition, speeding up connections and helping bring UK energy costs in line with other European countries within a decade.
Make UK Chief Executive Stephen Phipson CBE said the announcement was a positive step towards addressing long-standing problems with grid infrastructure, but that manufacturers could not afford to wait for longer-term reforms.
We welcome the PM’s announcement of Great British Grid as a move to address a clear market failure. We look forward to working with Government on its implementation. Of greater importance was the commitment to get UK industrial energy costs in line with the EU. The quickest way to do this is removing policy levies off bills, a commitment the PM could so easily have made today.
“With one in four of our members either already offshoring activity or actively weighing it up, our members need help right now. Deindustrialisation is not something that happened in the past. For our members it is a very real and present threat.
"The PM talks of bringing back hope. If manufacturers are to feel it, they need action at the Budget and faster delivery of the Industrial Strategy.
Make UK has consistently highlighted the competitiveness challenge posed by the UK's high industrial energy costs, particularly for energy-intensive manufacturers. The Prime Minister's commitment to bring energy costs into line with European countries therefore represents an important recognition of the scale of the issue.
However, manufacturers will be looking for greater detail on how and when this ambition will be delivered. With the Autumn Budget approaching on 28 October, Make UK is calling for measures that can reduce costs for businesses now, alongside faster implementation of existing Industrial Strategy commitments.
For manufacturers, the test will be whether today's commitments translate into lower energy costs, faster grid connections and a more competitive environment for investment in the UK.