- According to the survey, the main trade association for British manufacturers.
- The percentage of manufacturers has decreased from 63% to 31% over the past year.
- 43% said that Britain has become less attractive to foreign investors.
Rising energy prices and recent political unrest have reduced the competitiveness and appeal of the UK to overseas investors, manufacturers claimed in an industry poll released on Monday.
According to a survey conducted by PwC and Make UK, the main trade association for British manufacturers, the percentage of manufacturers who believe that Britain is a competitive location has decreased from 63% to 31% over the past year, and 43% said that Britain has become less attractive to foreign investors.
In a survey of 235 businesses conducted between November 1 and November 22, while the upheaval of Liz Truss’s brief administration was still fresh in people’s minds, 53% of the companies stated that continuous political unrest had harmed business confidence.
Jeremy Hunt, the finance minister, is expected to present ideas this week for drastically reducing energy subsidies for businesses.
According to Make UK, the proposals are probably going to make the production and job cuts that were originally planned worse.
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In November, when the study was conducted, two-thirds of manufacturers anticipated reducing staff or reducing output as a result of high energy costs.
British manufacturers have been having trouble lately, and recent, closely-watched S&P Global business surveys reveal that in December, they experienced a more severe downturn than their Group of Seven counterparts.
“The year ahead is going to be very challenging for manufacturers with a potent mix of factors testing their resolve,” Stephen Phipson, chief executive of Make UK.
Increasing levels of economic and political instability in their key markets can be added to ongoing supply chain disruption, labor availability issues, and high transportation costs.
Phipson warned that if the government didn’t match the generous energy bill support programs that Britain’s rivals have in place, British firms would “slip between the cracks.”
According to the UK local media on Friday, the government’s plans to reduce energy subsidies for businesses will result in an 85% reduction in support costs over the course of the following fiscal year, keeping the whole cost at a maximum of £5 billion ($6 billion).
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