Make Uk has said that: “Britain risks becoming the first advanced economy to have an industrial strategy without a significant industrial base to support as an increasing number of manufacturers are moving production overseas.”

The manufacturing and engineering body has barred no holds in saying that Labour’s Industrial Strategy of “bold action” to bring down energy costs, as delivered “nothing” to support businesses.

Following the release of the quarterly Manufacturing Outlook report, Make UK is today warning ministers that manufacturers’ patience has run out and that member companies are taking action to move production elsewhere, a warning backed by the Trades Union Congress.

Commenting on the findings, Stephen Phipson, CEO of Make UK, said: “The time for talking is over. Electricity and gas in the UK are far too expensive and it’s costing our country steeply. We cannot afford to be delayed by political upheaval, or by further consultations. For the sake of thousands of jobs across Britain, the Government needs to step in and act now to expand the British Industrial Competitiveness Scheme to all of the manufacturing industry and speed up delivery.”

The warning comes on the back of a major survey released by Make UK.

According to Make UK’s survey, almost one in ten companies have already moved production overseas due to higher business costs, with a further 16 per cent considering doing so. Almost half (46 per cent) have seen a further increase in their energy bills since the start of the conflict in the Middle East, with 60 per cent passing this rise on to customers.

However, despite increasing their prices, margins are continuing to be squeezed with almost all companies saying they will see a very significant or somewhat significant impact on their profitability. In response, 38 per cent of companies have delayed investment and more than a fifth have reduced their headcount.

To make it worse, the increases in energy costs come on top of a raft of increased employment costs from the increase in National Insurance Contributions and raising of the threshold at which they are paid.

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