Net zero-obsessed Labour slammed for 'stunting growth and extortionate energy costs'

Thousands of lifeblood manufacturing businesses face a 100% increase in energy bills because of a triple whammy of new demands. Firms are bracing themselves for sky-high payments that could torpedo already squeezed bottom lines in what industry chiefs described as "frightening".

Next week, charges levied on companies for operating the UK electricity transmission system will ramp up. One month later, a "stealth tax" will be added to bills to help fund the construction of new nuclear power stations, starting with Sizewell C. The final blow will arrive on April 1 next year, with businesses forced to stump up extra to pay for the modernisation of the UK electricity network. The perfect storm has sparked anger and resentment as small and medium-sized firms are disproportionately clobbered, while bigger companies are protected by a scheme set up to shield them from excessive costs.

Stephen Morley, President of the Confederation of British Metalforming (CBM), said: "I'm absolutely seething about the changes that will hit our members hard, with some of them set to experience a 100% increase in charges as a result of these changes and the new tax.

"We already have the highest energy costs in the G7, with average prices that are 50% more than Europe and 120% higher than the United States. I thought Labour's entire manifesto was aimed at growth - I just didn't realise they meant energy prices."

Help is only available to a select group of firms classed as "energy intensive" discounting the vast majority of smaller but equally critical manufacturers described as the "engine room of the UK".

Mr Morley said: "The majority of CBM members are not classified under the current scheme, which means they will shoulder the burden of these changes and end up propping up the bigger companies. It is effectively a double punch in the financial gut."

The CBM trade association represents manufacturers of fasteners, forgings, pressings, cold-rolled and sheet metal products, all playing a vital role in helping to build Britain and boost the economy.

Mr Morley added: "Even if the rumours of some form of VAT relief on energy in the Budget are true, they will simply be negated by the introduction of these new charges and the Sizewell C stealth tax, with industry again footing the bill.

"I warned earlier in the year that we would get to net zero by deindustrialisation...I just didn't expect to be proven right so quickly.

"The Government and Ofgem need to come clean with business and start a wholesale root and branch review of the energy market before it's too late and the lights go out on industry forever."

Liam Conway, founder of Greenfields Energy Group, added: "The figures are frightening - there's no real way of sugar coating it.

"For example, a SME will see an average increase of £9,305 on the (network modernisation charge) alone. For a larger business this will rocket to £128,000.

"Regardless of contract timing I'm afraid to say the increases are coming."