Make UK Warns Manufacturers Risk Missing Out On Energy Bill Support

Manufacturers are calling for an urgent review of government electricity bill support amid warnings that businesses facing high energy costs could be excluded from a scheme intended to improve Britain’s industrial competitiveness.

Make UK, the manufacturing industry body, has written to Business Secretary Jonathan Reynolds urging ministers to reconsider eligibility for the British Industrial Competitiveness Scheme (BICS), arguing that its current criteria risk excluding internationally competitive companies.

The intervention follows the Budget and comes as manufacturers continue to face pressure from electricity prices, which have affected investment decisions and the competitiveness of UK production.

According to Make UK, 13 per cent of manufacturers believe another energy price shock could threaten the survival of their business.

In his letter, Make UK chief executive Stephen Phipson welcomed clarification of the scheme’s funding but warned that restricting support to selected sectors and product classifications could leave some energy-intensive businesses without assistance until a planned review in 2030.

The organisation highlighted the experience of Advance Tapes Group, a manufacturer based in Thurmaston, Leicestershire, which employs 102 people and exports more than three-quarters of its UK production.

Despite reducing electricity consumption by 22 per cent between 2021 and 2025, the company’s annual electricity bill increased by 52 per cent, from approximately £342,000 to £518,000.

Its average effective electricity price almost doubled, rising from around 12p to 23p per kilowatt hour.

However, Make UK said the business appeared largely ineligible for support under BICS because most of its pressure-sensitive adhesive tape products fall outside the scheme’s selected classifications.

The case highlights concerns that eligibility based on industry categories may fail to reflect the energy costs faced by individual manufacturers.

Make UK argues that reducing the underlying cost of industrial electricity is essential to protecting investment, employment and export competitiveness.

The industry body wants the government to review the scheme before 2030 and ensure that manufacturers facing substantial energy costs are not excluded simply because of how their products are classified.

The warning adds to pressure on ministers to address industrial energy prices as part of their wider efforts to encourage domestic manufacturing and attract investment.

For companies operating in international markets, higher electricity costs can reduce margins and make UK production less compet