High energy prices threaten UK’s status as manufacturing power, business groups say

The Confederation of British Industry (CBI) and Energy UK have warned that the UK is at risk of losing its status as a major manufacturing center after a new report revealed that 40% of firms have cut investment due to persistently high electricity costs that remain far above pre-Ukraine war levels. The alarming findings, released in February 2026, come as businesses across the country continue to grapple with energy prices that have soared following the conflict in Ukraine and show no signs of returning to previous benchmarks. The report paints a concerning picture of an industrial sector under severe pressure, with manufacturing companies particularly vulnerable to the ongoing energy crisis that has reshaped the UK's economic landscape. Food producers, one of the most energy-intensive sectors, have been especially vocal about their concerns, describing the current energy charges as 'eye-watering numbers' that threaten their ability to remain competitive and maintain production levels.