Image used for representational purpose. AP
London: Foreign investors find Britain less competitive and attractive owing to soaring energy prices and recent political turmoil, manufacturers have warned in an industry survey released on Monday.
Only 31 per cent of manufacturers think that UK is a competitive location as compared to 63 per cent a year ago. While 43 per cent of the manufacturers said that Britain has become less attractive for investors abroad, as per a survey conducted by Make UK.
The survey, which took place between November 1 to November 22 last year, recorded the responses of 235 businesses following the turmoil of Liz Truss’s stint as the prime minister of UK. This is the period when 53 per cent of the firms operating in the country said that political instability had acted as a major blow to business confidence.
Make UK says that after finance minister Jeremy Hunt outlines a plan to scale back energy subsidies for business this week would lead to more job cuts and products that were already in the pipeline.
Stephen Phipson, chief executive of Make UK said, “The year ahead is going to be very challenging for manufacturers with a potent mix of factors testing their resolve.”
“Ongoing supply chain disruption, access to labour and high transport costs which show no sign of abating can be added to a growing sense of economic and political uncertainty in their main markets,” he added according to Reuters.
British manufacturers are exposed to a “significant risk of falling through the crack” if the government fails to match the generosity of energy bill support programmes that Britain’s competitors have in place.
Daily Telegraph reported that the government is planning to scale back energy subsidies for businesses in UK which will, in turn, see costs dropping by 85 per cent in the next financial year.
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