Burnham urged to slash industrial energy costs as manufacturers suffer biggest fall in orders for six years

By JOHN-PAUL FORD ROJAS, DEPUTY BUSINESS EDITOR Andy Burnham was yesterday urged to slash industrial electricity prices as manufacturers suffered the steepest rise in costs in four years. New orders also fell sharply – at the fastest pace in six years – according to figures for July compiled by the Confederation of British Industry (CBI). They illustrate the scale of the challenge facing the new Prime Minister after setting out his ambition to reindustrialise Britain. The survey found that falling orders reflected both domestic and export trade weakening – and that firms expect them to decline again over coming months ‘at a rapid pace’. Sentiment among UK manufacturers continued to decline as costs outpace prices, squeezing profitability. Andy Burnham has been urged to cut business energy costs as manufacturers suffer  That has left firms cutting investment plans and jobs, with deeper cuts to employment expected over the next few months, the poll found. A key problem is that UK factories pay 45pc more for their electricity than the average across the G7 group of major advanced economies. Ben Jones, senior lead economist at the CBI, said: ‘We’re seeing manufacturers being squeezed from both sides. ‘Costs continue to climb while weak demand limits their ability to raise prices – leaving firms to absorb the pressure through shrinking margins, weaker investment and further cuts to employment. ‘If the new administration is serious about reindustrialising Britain, restoring industrial competitiveness must be one of its first priorities. ‘Cutting industrial electricity costs would give manufacturers greater confidence to invest, expand and create jobs.’ Worse could be to come for manufacturers’ costs as oil prices surge again. Rob Wood, chief UK economist at Pantheon Macroeconomics, said: ‘Looking ahead, we expect high oil prices and ongoing trade-related uncertainty to weigh on sentiment amongst manufacturers over the coming year, leading to only small gains in the sector.’ Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence. MIDAS SHARE TIPS MIDAS SHARE TIPS: The giant stocks most in danger if the AI tech bubble suddenly bursts... and which are still worth clinging on to MIDAS SHARE TIPS: How to build long-term profits by investing in family-run firms MIDAS SHARE TIPS: Three rejuvenated stocks to put in your trench coat pocket MIDAS SHARE TIPS: Retail giants that could give YOU a Christmas bonus MIDAS SHARE TIPS: Take a bite out of these three firms floating shares on stock market MIDAS SHARE TIPS: Three stocks to help you survive a financial crash MIDAS SHARE TIPS: How to profit from the growing British businesses that will put patriotic pride in your investment portfolio MIDAS SHARE TIPS: How YOU can profit from Trump and Starmer's 'golden age' of nuclear power MIDAS SHARE TIPS: Four crash-proof stocks to survive economic disaster         DM.later('bundle', function(){ DM.has("p-1047", "pictureSwap"); }); FUND AND TRUST IDEAS ECOFIN GLOBAL UTILITIES AND INFRASTRUCTURE: A fund to tap into surging electricity prices WS GUINNESS GLOBAL ENERGY: Rising oil price lifts returns for investors FIDELITY SPECIAL VALUES: Manager seeks to protect income flow in troubled times MURRAY INCOME TRUST: New managers stick with winning formula FORESIGHT ENVIRONMENTAL INFRASTRUCTURE: A fund built to withstand weather risks CAPITAL GEARING: An investment trust that's built to protect investors against rising inflation MURRAY INTERNATIONAL: The trust that has delivered on dividends for 21 years...and counting JUPITER UK DYNAMIC EQUITY: The fund that transforms companies... and then waits for their shares to rise BLACKROCK ENERGY AND RESOURCES INCOME: The trust primed to profit from the future of energy and mining ROCKWOOD STRATEGIC: Raking in big returns from Britain's unloved small firms         DM.later('bundle', function(){ DM.has("p-1068", "pictureSwap"); }); Latest from Business US predators' plans for secondary listings 'barely a consolation prize' and leaves City reeling ALEX BRUMMER: Jonathan Reynolds must take a tougher line on foreign takeovers Gary Lineker told to write a cheque if he wants to pay more tax: 'Put your money where your mouth is!' UK borrowing costs soar as oil price jumps to $100 Burnham urged to slash industrial energy costs as manufacturers suffer biggest fall in orders for six years Petrol prices 'shooting up like a rocket' as oil hits $100 a barrel New Chancellor John Healey tells business: I'll lift the gloom left by Rachel Reeves Rogue AI poses serious risks to the financial world: RUTH SUNDERLAND British Gas owner to axe 1,300 jobs as AI chatbots take on more customer service Takeover target Easyjet sees profits tumble on higher fuel prices MORE HEADLINES