British steel manufacturers are currently facing a significant competitive disadvantage due to electricity costs, which have reached their highest level relative to European rivals in three years. According to data from the industry lobby group UK Steel, the price gap between the UK and France has widened to approximately £30 per megawatt hour (MWh).

This increase is largely attributed to a surge in global gas prices, which industry observers link to geopolitical instability, specifically the conflict involving the US, Israel, and Iran. High energy costs have long been identified as a primary barrier to industrial productivity in the UK. For policymakers, including Andy Burnham, these costs are viewed as a critical obstacle to broader goals of reindustrializing the British economy. While the report highlights the disparity in energy pricing, it notes that these costs remain a persistent factor cited by businesses when explaining the challenges of maintaining a competitive manufacturing sector in the UK.