Lower energy prices for manufacturers – an indirect benefit for retailers (and the environment)?
As reported by The BBC, the government has announced plans to lower energy costs for thousands of businesses by exempting them from various green levies, reducing bills by up to 25%. Retail and leisure sectors have been excluded, but could they benefit indirectly?
For those that use UK manufacturers, some of the savings may be passed down the line to retailers or (dare we even hope?!) to the consumer.
The term “on-shoring” has hit the news recently. On-shoring is the process of bringing business operations back to the UK, including manufacturing. There has been a slow trend towards on-shoring since COVID-19, which has been accelerated by recent policies in the US.
If the cost of manufacturing goods in the UK reduces as a result of the lower energy prices, this might encourage more retailers to on-shore their supply chains. This, in turn, will benefit the environment due to shorter supply chains and reduced shipping/transportation.
Time will tell…but with only three years left to meet net zero targets in order to keep global warming below 1.5 degrees C, it seems that these changes cannot come too soon.
Subcribe to news and viewsRetail and leisure sectors have not been included in the strategy despite many complaining of high energy bills and the rise in staffing costs.
https://www.bbc.co.uk/news/articles/c1ljnrrmd7jo
