Energy costs are killing our industries and communities… and they'll kill Labour too unless they bring them down

The Sun

5 hours ago

THE steelworks, chemical plants and paper mills that criss-cross our country are the lifeblood of so many communities across the UK, providing good jobs and supporting local economies.
Work in these plants can often be tough. But they are highly-skilled, well-paid and secure jobs for people to work in throughout their careers.
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A hard day's work is rewarded with the knowledge your graft is going into producing valuable goods for some of the nation's most needed goods, such as the steel for our warships, chemicals used in the production of antibiotics for cancer treatments, or indeed the paper for your daily newspaper.
These sectors provide a sense of pride and place to communities.
Think of the smoke piling from the furnace towers at the steelworks in Scunthorp e, or the cranes stretching over Port Talbot. Images that define towns, giving them a part in the story of our complex modern world.
Greasy spoon
And it's not just the people directly employed in these factories and the wider supply chain that are dependent on the factories and manufacturing sites.
The family-run greasy spoon that fuels workers before a long shift. The kids' football club sponsored by the local plant.
The local pub where workers congregate after a busy week.
Without our industrial sector, the bedrocks of communities wouldn't exist.
But new research from the Jobs Foundation finds these roles are at risk. In 1999, the UK had the fourth-largest industrial base in the world, with more than four million workers.
Today, the UK has just the 11th largest. In this period, we have gone from more than four million people employed in the manufacturing sector, to just two and a half million, with little growth in value added over the past 30 years.
Steel production has fallen from 12million tonnes in 2013 to 4million in 2024.
Last of Redcar steelworks demolished with 105,000 tonnes of steel brought down in 30 seconds-
Between 2021 and 2024, chemical output has fallen by 40 per cent, and aluminium and paper mills have been shuttered.
We've been through this before. In the Eighties, the Thatcher government oversaw a dramatic turnaround in the economic fortunes of the UK.
But in this process of national economic revival, certain communities, such as those centred around coal mines, were devastated.
Not enough thought was put into the transition. And this is a mistake which we risk repeating today.
UK factories and plants pay more than three times as much for their energy as similar users in Germany, and seven times the cost paid by businesses in France.
This time, deindustrialisation isn't happening as part of a coherent economic strategy.
Instead, high energy prices are allowing us to sleepwalk into the decimation of UK industry.
Everyone is now familiar with the spike in energy costs in recent years, with the energy price cap for households. But the situation is even worse for industrial users.
UK factories and plants pay more than three times as much for their energy as similar users in Germany, and seven times the cost paid by businesses in France.
With these costs, it's no wonder that industrial output across the UK continues to dwindle, simply unable to compete with cheaper production costs overseas.
And as our competitiveness falls away, so too do the good jobs that energy-intensive industries provide.
We also mustn't forget that energy costs are crippling other sectors too. Empty shops fill high streets, as hospitality and retail businesses can't keep up with the ever-increasing cost of keeping the lights on.
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And we aren't creating good new jobs in the sectors of the future like AI and data centres, because they also require a lot of energy to operate.
There is much talk about how new, clean energy will provide us with abundant energy, lower prices and a host of good new jobs.
Roll the dice
Promises of new jobs in clean energy are just that: Promises. Promises that might come in the future, but might not.
Jobs across heavy industry exist in the present, and time has taught us that once these jobs go, they don't come back. We must do everything that we can to protect them.
If Labour wants to have a chance of holding these seats at the next election, the upcoming industrial strategy must include concrete policies to bring energy costs down.
Since the last election, Labour MPs represent the vast majority of seats where our industrial bases are located.
But that could quickly change.
Our research shows Nigel Farage and Reform is poised to sweep the majority of constituencies that are most reliant on jobs in energy-intensive industries at the next election.
And who could blame voters in these constituencies, watching jobs in their local areas at risk through no fault of their own, for wanting to roll the dice with Reform.
If Labour wants to have a chance of holding these seats at the next election, the upcoming industrial strategy must include concrete policies to bring energy costs down.
This is in the country's best interests too. Industry gives purpose to communities, dignity to workers, and protects our national security.
Let's do our part to protect it.
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