Decline in industrial production leaves UK exposed to global shocks, industry leaders warn

Trade bodies representing manufacturers, including Fuels Industry UK and the Carbon Capture and Storage Association (CCSA), said more must be done to protect British businesses from unfair international competition.

In a letter to Industry Minister Chris McDonald, they said that the Government must help improve industrial competitiveness and create conditions for long-term investment.

The Department for Business and Trade has already shown it has been prepared to step in in certain sectors such as steel, where it has imposed quotas and tariffs on imports.

However, for other industries, such as bioethanol, which produces fuel and fertiliser, the plant in Saltend, near Hull, was allowed to close in the wake of the US trade deal.

Elizabeth de Jong, CEO of Fuels Industry UK, said: “The UK is steadily losing the industries that produce the essential materials, energy and products our economy depends on.

“That is leaving us increasingly exposed to global instability and reliant on imports for critical supply.

“What we are seeing in the Gulf is a clear warning. In an unstable world, relying on overseas supply chains for the essentials of your economy is a vulnerability.

“Without urgent action, we risk further industrial decline and deeper dependence at precisely the wrong time.”

Mark Sommerfeld, UK Director at the CCSA, added: “The UK’s foundational industries are essential to our economy, our supply chains and our long-term energy security.

“Industrial decarbonisation is not separate from this challenge, it is central to it.

“Technologies like CCUS enable industries to reduce emissions while continuing to operate, invest and support jobs in the UK. It is these investments that will be part of assuring their future.

“Working alongside partners across industry, we are calling for a stronger policy framework to support competitiveness, unlock investment and ensure these sectors can thrive as the UK transitions to a low-carbon economy.”

Mr McDonald responded: “We understand the importance of UK manufacturing and heavy industry, but also recognise the challenges they're facing – and we’re tackling them through our modern Industrial Strategy, which will provide the certainty they need to invest, decarbonise and grow.

“We’ll shortly set out details of our new British Industrial Competitiveness Scheme, which will reduce electricity bills by up to 25 per cent for over 7,000 manufacturing businesses.”

This comes as ministers refused to confirm whether they have held secret briefings on fuel prices – warning that it could spark panic buying and potentially send markets into turmoil.

The Department for Energy Security and Net Zero said it could “neither confirm nor deny” whether briefing notes had been produced on petrol and diesel prices in recent weeks.

The move is unusual for such a politically sensitive cost-of-living issue, with the “neither confirm nor deny” approach more often associated with national security matters.

In its response to a freedom of information request by the Press Association, the department claimed that even acknowledging such material could prompt “mass purchasing” at the pumps and “economic damage” to the UK.

Official figures show UK inflation has risen again, driven in part by a sharp increase in petrol and diesel prices linked to the Middle East conflict.