Shares in Babcock, BAE Systems and QinetiQ have risen after former defence secretary John Healey was appointed chancellor. Investors expect him to support faster military investment, but funding a move towards 3% of GDP could require around £10 billion of additional annual spending.
Business leaders have urged incoming prime minister Andy Burnham to make reducing UK energy costs a day-one priority. The CBI and Energy UK argue that removing policy charges from electricity bills could cut costs by as much as 20% for some companies and generate £130 billion of additional economic activity by 2050.
Rolls-Royce has begun work on a major expansion of its Raynesway site in Derby, adding more than 100,000 square metres of manufacturing and office space and creating 1,170 skilled roles. The project will more than double manufacturing capacity for nuclear submarine propulsion and support both UK and Australian submarine programmes under AUKUS. It is a major opportunity for Derby, but also a test of skills, supply chains, defence funding and industrial delivery.
Britain’s manufacturers are warning that high energy costs are pushing production overseas and threatening jobs, investment and industrial capacity. Government support schemes may help some energy-intensive firms, but industry groups argue that the UK still faces a structural competitiveness problem.
High energy costs are becoming a serious threat to UK manufacturing, with industry leaders warning that jobs, investment and production are already being pushed overseas. As manufacturers face rising bills, squeezed margins and delayed support, Britain risks weakening its industrial base one investment decision at a time.
