UK energy strategy 'unsustainable' - manufacturer

The UK's energy strategy is "unsustainable", the managing director of a manufacturing firm has said.

Ed Pitt from KGD in Hereford said the UK had the "most expensive energy in the world" with his firm currently paying about £250,000 annually for electricity and gas.

His comments come after the International Monetary Fund (IMF) forecast the UK to face the greatest economic hit from Iran war out of all other major countries.

The IMF also cut its estimate for UK growth this year by half a percent - down to 0.8%, from the 1.3% prediction made in January before hostilities in Iran began.

It said the downgrade was due to the conflict in Iran, fewer interest rate cuts, and the expectation that the impact of higher energy prices would linger into next year.

The IMF suggested the UK, as a net importer of energy, remained sensitive to rapid rises in energy prices. It also warned of a possible global recession if the Iran war was prolonged.

Pitt's firm employs about 140 people and designs and manufactures fluid handling equipment for oil, gas, nuclear and renewable industries.

Responding to the IMF's forecast and speaking to BBC Today, he said: "We use about a quarter of a million pounds worth of electricity and gas every year, and we run about 20 company vehicles.

"It means we have instant diesel impacts at the moment and our electricity contract runs out in the autumn, so who knows what those prices will be?"

He added: "We have the most expensive energy in the world. We have some of the best natural resources but we refuse to use them and we want to buy from everywhere else.

"It's just unsustainable."

Chancellor Rachel Reeves said: "The war in Iran is not our war, but it will come at a cost to the UK. These are not costs I wanted, but they are costs we will have to respond to."

The US Treasury Secretary Scott Bessent also told the BBC a "small bit of economic pain for weeks" was worth it for the security of eliminating the risk of Iran deploying nuclear weapons.

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