UK Manufacturers Face Bleak Winter as Worst Energy Crisis since 1970s Bites

The pain of the energy crisis is being felt in various sectors of the British economy. Seven in ten British pubs have said they may go out of business this winter, while NHS executives have warned they may have to cut back services and lay off staff as their energy costs are set to double or even triple.

British factories are facing a major slowdown in orders this winter as the economy slides into recession thanks to the West's self-inflicted energy crisis.

A report by S&P Global and the Chartered Institute of Procurement and Supply warned that a global downturn could hit British producers and exporters.

"Companies experienced a sharp reversal in new orders, with demand from domestic and overseas clients contracting sharply," the report read.

The Institute of Chartered Accountants in England and Wales said last week that growth in exports has been weaker than the home market over the last quarter, which it sought to blame on "Brexit-related frictions, such as red tape and transport delays."

But the spectre of energy rationing this winter — last seen during the 'three-day week' of the early 1970s — also worries many firms, despite assurances from ruling Conservative Party leadership contest favourite Liz Truss.

Gas and electricity prices have more than doubled thanks to Western sanctions on Russia over its military operation to defend the Donetsk and Lugansk People's Republics from Ukrainian aggression.

Now several European countries have warned of blackouts if severely-depleted gas reserves start to run out.

Irreversible Shutdown

Leaders of some sectors pointed out that interruptions to their gas or electricity supply would cause major disruption at plants that would last long after it was turned on again.

Rob Flello, chief executive officer of the British Ceramic Confederation, said shutting down a kiln can take up to two weeks, and any cut-off "need to be handled in a coordinated and timely manner, with close cooperation" between the government and companies.

Dave Dalton, head of British Glass, said furnaces used in the industry simply "cannot be turned off."

"The damage that can occur within a few hours of gas being disconnected will lead to furnaces being lost," Dalton explained.

The pain of the energy crisis is being felt in other parts of the British economy.

Seven in ten British pubs have said they may go out of business this winter thanks to astronomical hikes in gas and electricity bills — unprotected by energy regulator Ofgem's price cap on household prices.

And NHS executives have warned they may have to cut back services and lay off staff as their energy costs are set to double or even triple.