Listen
Tap play to hear this story.
Britain’s sky-high energy costs have wiped £30BILLION off UK GDP, report finds
Sky-high industrial energy costs have slashed £30 billion from the UK’s GDP since 2019, according to a new report from analysts EY. British businesses face the highest energy bills in Europe, forcing power-hungry industries to shrink while the wider economy grew.
UK Industries Lag Behind Europe
British industrial energy prices were “broadly comparable” to those in Europe in 2019. Now, they are the highest across the continent. This has crippled the UK’s energy-intensive sectors. Output from these industries has fallen by eight per cent since 2019. The wider UK economy grew by six per cent over the same period. This stark contrast highlights a major economic failure.
£30 Billion Lost Since 2019
The EY UK Economic Outlook report for May exposes the true cost. If energy-intensive industries had simply kept pace with the broader economy, GDP would be £30 billion higher in 2025. This massive shortfall directly impacts national wealth. It means less investment and fewer jobs for British workers. Long-term decisions about the UK’s energy mix are blamed. Gas typically sets the price of wholesale electricity. Renewable levies also add to the burden. These policy costs support new renewables, new nuclear, and grid expansion.
- UK industrial energy prices are now the highest in Europe.
- Energy-intensive industries’ output fell 8% since 2019.
- Wider UK economy grew 6% in the same period.
- £30 billion wiped from UK GDP since 2019.
- Long-term energy mix decisions are a key cause.
- Renewable levies and policy costs add to high bills.
What This Means for Britain
This report reveals a stark reality for British working families and businesses. High energy costs mean higher prices in shops. They mean British manufacturers struggle to compete globally. This directly impacts jobs and wages across the country. Industries like steel and chemicals face significant pressure. They are forced to reduce output and investment. This is not just about big corporations. It affects every small business in their supply chain. It means fewer opportunities for skilled workers. The cost of living crisis is exacerbated by these systemic failures. British people are paying the price for poor energy policy decisions.
The underlying issue is a failure to secure affordable and reliable energy. Decades of policy choices have left Britain vulnerable. The reliance on gas to set electricity prices is a critical flaw. The push for green energy, while necessary, carries significant policy costs. These costs are passed directly onto businesses and consumers. The Labour government’s plans to decouple gas and electricity prices are welcome. However, the damage is already done. The expansion of the British Industrial Competitiveness Scheme offers some relief. It exempts 10,000 companies from green charges. But this is a patch, not a cure. The structural problems remain unaddressed.
Looking ahead, the situation demands urgent action. The Labour government must prioritise energy security and affordability. Diversifying the UK’s energy mix is critical. But it must be done without crippling British industry. The impact of global events, like the Iran conflict, adds further uncertainty. This will continue to cast a long shadow over energy-intensive businesses. British citizens need to watch closely for concrete policy changes. Will the government truly tackle these “structural challenges”? Or will British industry continue to pay the highest prices in Europe? The £30 billion lost is a clear indicator of past failures.
Share if you believe British businesses deserve fair energy prices.
This article is a factual summary of reporting by GB News. Full original story available on their website. All quotes directly attributed.
Source: GB News | Breaking Brexit News
Discover more from Breaking Brexit News
Subscribe to get the latest posts sent to your email.
Join the discussion