The Aluminium Federation (ALFED) and the Cast Metals Federation (CMF) have jointly submitted a Parliamentary briefing to Ministers and MPs following discussions at the All-Party Parliamentary Manufacturing Group (APMG) on 23 June, highlighting growing concerns over the impact of industrial energy costs on UK manufacturing competitiveness, investment and employment.
The briefing, developed following engagement with parliamentarians and industry representatives this week, calls for a renewed focus on industrial energy competitiveness as a critical component of the UK’s industrial strategy, economic growth ambitions and plans for reindustrialisation.
Whilst welcoming the Government’s introduction of the British Industrial Competitiveness Scheme (BICS), both organisations have warned that targeted support schemes alone will not address the underlying challenge facing UK manufacturers: industrial electricity costs that remain significantly higher than those faced by many international competitors.
Energy costs impacting jobs and skills
A central theme of the briefing is the growing evidence that rising industrial energy costs are directly affecting employment, recruitment and investment decisions across energy-intensive manufacturing sectors.
Businesses operating within the aluminium and cast metals industries have reported examples of workforce reductions, recruitment freezes, deferred investment, reduced operating hours and the temporary idling of production assets as a result of increasing energy costs.
The briefing warns that the consequences extend far beyond production volumes.
When manufacturing capacity is lost, valuable technical expertise, apprenticeship opportunities and specialist engineering skills are also placed at risk. Once lost, these capabilities can take years to rebuild, creating longer-term challenges for industrial resilience and economic growth.
ALFED and CMF have also highlighted concerns that rising cost pressures could undermine wider Government ambitions to increase employment opportunities for young people, as manufacturers facing increased operating costs often reduce recruitment and apprenticeship programmes.
Competitiveness must support growth and reindustrialisation
The briefing argues that industrial energy policy should be viewed as a strategic economic issue rather than solely an energy policy matter.
The aluminium and cast metals sectors support critical supply chains across automotive, aerospace, defence, infrastructure, transport, construction and low-carbon technologies. Together, they underpin thousands of skilled jobs and significant economic value across the UK.
The aluminium sector alone contributes approximately £9.4 billion in Gross Value Added (GVA) to the UK economy.
Both organisations stress that sustainable reindustrialisation cannot be achieved through support schemes alone.
Whilst interventions such as BICS can provide important short-term relief, businesses and investors generally view such mechanisms as temporary policy measures rather than long-term foundations for investment decisions.
The briefing therefore calls for a long-term strategy to deliver internationally competitive industrial electricity prices and create the conditions necessary for sustained investment, growth and manufacturing expansion.
Concerns around BICS eligibility
The joint submission also raises concerns regarding the current exclusion of aluminium casting and other non-ferrous processing activities from BICS eligibility criteria.
These sectors are highly energy intensive and play a critical role within UK manufacturing supply chains, supplying products and components to strategically important sectors including defence, aerospace, automotive and energy.
ALFED and CMF are calling on Government to review the evidence underpinning current eligibility classifications and ensure that future industrial competitiveness policies support complete manufacturing supply chains rather than isolated sectors.
Continued industry engagement needed
Alongside policy recommendations, the briefing emphasises the importance of ongoing engagement between Government and industry throughout the implementation of BICS and future industrial competitiveness initiatives.
Both organisations have called for greater clarity on implementation timelines, eligibility criteria, future reviews and long-term policy direction to provide manufacturers with the confidence required to invest in people, facilities and low-carbon technologies.
Industry statement
Commenting on the submission, Nadine Bloxsome, Chief Executive Officer of ALFED, said: “The message from industry is clear. Energy costs are no longer simply affecting profitability; they are influencing investment decisions, recruitment plans and the long-term future of manufacturing capability in the UK.
The aluminium sector supports critical supply chains and plays an essential role in the transition to a more sustainable and resilient industrial base. If we are serious about reindustrialisation and economic growth, we must ensure that UK manufacturers can compete on a level playing field internationally.”
The briefing has been shared with Ministers and parliamentarians to support ongoing discussions around industrial competitiveness, energy policy and the future development of the British Industrial Competitiveness Scheme.
Lee Marshall, CEO of the Cast Metals Federation said: “UK metal casting is genuinely world leading and strategically significant to the resilience of multiple supply chains, but high energy costs are hampering its ability to compete globally for larger volume work.
“The manufacturing sector is an asset to the UK and we need the policies to support it and help it thrive so that we can unlock investment and contribute towards the economic growth of the UK.”
