Put your “foot on the accelerator” and speed up support for British car makers, says TUC – as Paul Nowak visits carmaker JLR

• TUC calls today for the Government to go further and faster to protect the car industry from sky-high energy costs 

• UK car makers create good jobs and growth, but high energy bills in the UK mean they struggle in the face of competition from abroad 

• Ahead of the budget, the TUC is calling for the Government to act immediately to bring down energy costs, and in the long run move away from the costly rollercoaster of global gas markets 

On a visit to the Jaguar Land Rover factory in Solihull, the General Secretary of the Trades Union Congress (TUC) Paul Nowak has today (Wednesday) called on the Government to put its “foot on the accelerator” and speed up support for the UK car industry. 

The automotive sector will be central to future jobs and growth, but UK industry is currently suffering from sky-high energy costs, hitting competitiveness. 

While recent support announced in the Industrial Strategy is welcome, the TUC is today calling on the Government to go further and faster to bring down energy bills for manufacturers. Ahead of the budget, the TUC is calling on the Government to: 

• Speed up the rollout of bill discounts for the UK’s most important industries, 

• Protect other bill payers by funding the discount scheme through general taxation, and

• Lower energy prices in the long run by separating bill prices from the rollercoaster global gas market 

The automotive sector supports 200,000 jobs in every part of the UK, with 800 000 in the wider supply chain. Iconic brands like Range Rover and Jaguar F-Pace, made at the Solihull factory, are symbols of British quality and prestige around the world.

But sky-high energy costs are putting British car makers at a disadvantage compared to other countries. Industrial electricity costs are the highest in Europe, double the European average, meaning jobs risk moving abroad. 

The Government introduced welcome support to cut energy bills for businesses as part of the Industrial Strategy, but the new discounts are not due to be introduced until 2027, potentially too late for many manufacturers. The TUC is calling on the Government to bring forward the introduction of the British Industrial Competitiveness Scheme or offer interim support for businesses that are struggling, and make sure energy cost relief schemes are properly funded, to avoid the risk of making everyone else’s energy more expensive. 

High energy bills are being driven by our dependence on the rollercoaster international gas market to set the price of electricity. Unlike France and Germany, which depend much more on nuclear, and other energy sources Vladimir Putin doesn't control, the UK’s electricity prices are almost always set by the international cost of gas.

In the long run, the TUC is calling for the Government to explore how best to restructure the electricity market to provide cheaper, more predictable energy prices and reduce our dependence on volatile overseas gas prices.

Speaking on a visit to the JLR Solihull factory, the TUC General Secretary Paul Nowak said: 

“Car making is one of the jewels in the crown of British industry, and British classics like Range Rover and Jaguar are iconic around the world.

“But sky-high energy costs mean we risk losing out to competition from abroad. 

“The Government has set out welcome support in the Industrial Strategy, but must go further and faster to bring down energy bills for British businesses. 

“It’s time for the Government to put its foot on the accelerator, and act now to protect jobs and manufacturing in the UK.”