UK has become less competitive and less attractive to foreign investors as a result of soaring energy costs and recent political turmoil, manufacturers said in an industry survey released on Monday.
The proportion of manufacturers who think Britain is a competitive location halved to 31% from 63% a year ago, and 43% said Britain had become less attractive to overseas investors, according to the survey by Make UK, the main trade body for British manufacturers, and accountants PwC.
The survey of 235 businesses took place from Nov. 1 to Nov. 22, when the turmoil of Liz Truss’s short-lived government was fresh in people’s minds, and 53% of firms said ongoing political instability had damaged business confidence.
This week finance minister Jeremy Hunt is due to outline plans to sharply scale back energy subsidies for businesses.
Make UK said the plans are likely to lead to exacerbate cuts to jobs and production that were already in the pipeline.