Manufacturing jobs are flowing overseas, and the UK has sounded the alarm for "deindustrialization"

(London Reuters News) British manufacturing groups and trade union organizations have warned that the soaring energy costs are "pushing" manufacturing jobs overseas, and that the UK is at risk of experiencing a decline in key industries and even "deindustrialization". They have called on the government to take stronger measures to alleviate the energy burden on businesses.

According to the industrial strategy launched by the UK a year ago, the government promised to reduce the electricity costs of high-energy-consuming industries by exempting them from some green taxes. Later, it also stated that it would expand the scope of the plan and implement it retroactively.

However, a survey conducted by the British manufacturing organization Make UK shows that more than half of the enterprises have not yet benefited from this strategy. Approximately a quarter of the enterprises have already moved some of their production overseas, or are considering doing so.

The CEO of Make UK, Phipson, warned that if more energy cost reductions were not provided to manufacturers, the UK would face the risk of "deindustrialization".

Phipson said that if the current relief plan were extended to the entire manufacturing sector, the annual cost would be approximately 3 billion pounds (about 520 million Singapore dollars), but it is expected to preserve 2.5 million jobs.

The Trade Union Congress of the UK (TUC) also supports the expansion of the relief measures. Secretary-General Novak stated that the government should further expand the scope of the plan to protect employment and ensure that factories and production lines continue to operate.

As the US-Iraq war pushed up energy prices, British Prime Minister Straw was under pressure from within his party due to a series of policy shifts and high-level resignations. The increase in energy costs not only burdened businesses and households, but also made the already strained British finances even more strained, as defense and welfare expenditures had already squeezed them.