08-06-2025
British manufacturing is dying before our eyes
British industry has hit a new low. Factories consumed the least energy in 50 years in 2024, with the decline almost entirely because of shutdowns and closures.
Factory bosses say Britain's sky-high energy costs are crippling heavy industry, forcing businesses to shut down production lines or abandon operations altogether. They blame surging gas prices but also a succession of green levies piled onto bills.
The energy consumption slump, spelt out in the latest government statistics, comes just days before the Government is expected to announce its new industrial strategy. Jonathan Reynolds, the Business Secretary, is pledging to reverse decades of decline.
But the energy consumption data – widely seen as a proxy for the state of British manufacturing, especially the energy-intensive sectors – suggests Reynolds will need some truly radical measures if he is to succeed.
Britain has millions of businesses, which all consume energy, but what such data reflects most strongly are the trends within our 'foundational industries' – energy-intensive manufacturing that produces the basic materials other sectors need to function.
This includes steel, cement, chemicals, glass, paper and ceramics. Production of all of these materials relies on cheap, plentiful heat.
If that heat becomes expensive, those industries die – and that, both the stats and the industries themselves say, is what is happening.
