Overview

• Make UK warns that policy levies drive manufacturers’ energy bills 46% above the global average, threatening competitiveness and investment.
• Energy UK proposes shifting levies from electricity to gas bills to save electric-heating households £400 a year while offsetting an estimated £40 rise for low-income gas users.
• Analysis by Make UK finds removing net zero levies would slash manufacturers’ electricity costs by about 25% but cost the Treasury £3.8 billion.
• The government highlights its British Industry Supercharger, which is projected to save firms £5 billion over ten years, and says it is reviewing longer-term reforms including gas-electric price rebalancing.
• Manufacturing’s share of UK GDP fell to a record low of 9% in 2024, and the CBI forecasts private sector output will contract at the fastest rate since 2022.