Investors are reluctant to invest in UK
2023.01.09 01:56
Investors are reluctant to invest in UK
Budrigannews.com – According to a survey of the industry that was released on Monday, rising energy costs and recent political turmoil have made Britain less competitive and less appealing to foreign investors.
According to a survey conducted by accountants PwC and the main trade body for British manufacturers, Make UK, the survey of 235 businesses was conducted from Nov. 1 to Nov. 22, when the turmoil of Liz Truss’s short-lived government was still fresh in people’s minds, and 53% of firms said that ongoing political instability had damaged business confidence.
The proportion of manufacturers who believe Britain is a location that is competitive has decreased by half, from 63% a year ago to 31% today, and 43%
Plans to significantly reduce energy subsidies for businesses are scheduled to be presented this week by finance minister Jeremy Hunt.
According to Make UK, the plans are likely to intensify already-planned job and production cuts.
Due to rising energy costs, two thirds of manufacturers anticipated staff reductions or output reductions when the survey was conducted in November.
Recently, British manufacturers have struggled, with S&P Global (NYSE:) business surveys indicate that they experienced a more severe decline in December than their peers in other Group of Seven nations.
Stephen Phipson, chief executive of Make UK, stated, “The year ahead is going to be very challenging for manufacturers with a potent mix of factors testing their resolve.”
“A growing sense of economic and political uncertainty in their main markets can be added to ongoing disruptions in the supply chain, access to labor, and high transportation costs that show no sign of abating.”
Phipson stated that if the government did not match the generous energy bill support programs that Britain’s rivals have in place, there was a significant risk that British manufacturers would “fall through the cracks.”
According to a Friday report in the Daily Telegraph, the government’s plans to reduce energy subsidies for businesses will result in a cost reduction of 85% during the following fiscal year, bringing the total cost down to £5 billion ($6 billion).
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