{"id":108,"date":"2025-05-19T19:06:31","date_gmt":"2025-05-19T18:06:31","guid":{"rendered":"https:\/\/the.apoplectic-politico.com\/?p=108"},"modified":"2025-05-21T23:55:33","modified_gmt":"2025-05-21T22:55:33","slug":"priced-out-of-prosperity-why-industry-is-leaving-britain-behind","status":"publish","type":"post","link":"https:\/\/the.apoplectic-politico.com\/index.php\/2025\/05\/19\/priced-out-of-prosperity-why-industry-is-leaving-britain-behind\/","title":{"rendered":"Priced Out of Prosperity: Why Industry Is Leaving Britain Behind"},"content":{"rendered":"<p><strong data-start=\"257\" data-end=\"317\">Why Britain Is Losing the Race for Industrial Investment<\/strong><\/p>\n<p class=\"\" data-start=\"319\" data-end=\"695\">Despite government assurances about \u201cGlobal Britain\u201d and ambitions to become a world-leading hub for innovation and industry, the economic reality tells a different story. A closer look at key industrial costs across a range of countries shows that the United Kingdom has become one of the least attractive places in the developed world to launch or scale industrial ventures.<\/p>\n<p class=\"\" data-start=\"697\" data-end=\"870\">This article compares six core business costs across the UK, Europe, and the US, highlighting just how far Britain has drifted from being a competitive location for industry.<\/p>\n<div id=\"m-chart-container-138-1\" class=\"m-chart-container chartjs\">\n\t<canvas id=\"m-chart-138-1\" class=\"m-chart\" height=\"500\" aria-label=\"Cost of Doing Business Chart: Comparison of Key Business Costs Across Western Europe and the US\" role=\"img\" style=\"height: 500px;\"><\/canvas>\n<\/div>\n<script type=\"text\/javascript\">\n\tvar m_chart_container_138_1_canvas = document.getElementById( 'm-chart-138-1' ).getContext('2d');\n\n\tvar m_chart_chartjs_138_1 = {\n\t\tchart_args: {\"type\":\"bar\",\"options\":{\"plugins\":{\"title\":{\"display\":true,\"text\":\"Cost of Doing Business Chart\",\"font\":{\"size\":21,\"weight\":\"normal\"},\"padding\":{\"bottom\":10}},\"legend\":{\"display\":true,\"position\":\"bottom\",\"labels\":{\"font\":{\"weight\":\"bold\"},\"usePointStyle\":true}},\"tooltip\":{\"enabled\":true},\"subtitle\":{\"display\":true,\"text\":\"Comparison of Key Business Costs Across Western Europe and the US\",\"font\":{\"size\":18,\"weight\":\"normal\"},\"padding\":{\"bottom\":15}},\"datalabels\":{\"display\":false}},\"elements\":{\"point\":{\"hoverRadius\":7,\"hitRadius\":13}},\"responsive\":true,\"maintainAspectRatio\":false,\"locale\":\"en-GB\",\"scales\":{\"x\":{\"grid\":{\"borderWidth\":0,\"display\":false},\"title\":{\"display\":false,\"text\":\"\"}},\"y\":{\"grid\":{\"borderWidth\":0},\"title\":{\"display\":false,\"text\":\"\"}}}},\"data\":{\"labels\":[\"UK\",\"France\",\"Germany\",\"Netherlands\",\"Spain\",\"Poland\",\"Finland\",\"Austria\",\"Estonia\",\"Romania\",\"Ireland\",\"Italy\",\"Belgium\",\"Portugal\",\"USA\"],\"datasets\":[{\"label\":\"Industrial Rent (\\u00a3\/m\\u00b2\/year)\",\"data\":[150,82.5,90,102.5,65,52.5,75,85,45,40,100,75,85,57.5,75],\"backgroundColor\":\"#7cb5ec\"},{\"label\":\"Electricity Price (\\u00a3\/100kWh)\",\"data\":[15,14,18,16,17,13,8,16,14,12,22,19,20,18,12],\"backgroundColor\":\"#434348\"},{\"label\":\"Corporation Tax (%)\",\"data\":[25,25.8,29.9,22.4,25,19,20,23,20,16,12.5,27.8,25,30.5,21],\"backgroundColor\":\"#90ed7d\"},{\"label\":\"VAT (%)\",\"data\":[20,20,19,21,21,23,25.5,20,22,19,23,22,21,23,0],\"backgroundColor\":\"#f7a35c\"},{\"label\":\"Labour Cost (\\u00a3\/hour)\",\"data\":[27.5,40,42,38,22,10,35,39,15,11,36,30,41,18,30],\"backgroundColor\":\"#8085e9\"},{\"label\":\"Trade Difficulty Score (1-100)\",\"data\":[16,11,11,6,14,21,16,18,19,17,11,13,12,10,14],\"backgroundColor\":\"#f15c80\"}]},\"value_prefix\":\"\",\"value_suffix\":\"\",\"locale\":\"en-GB\",\"labels_pos\":\"both\",\"graph\":{\"width\":\"\"}},\n\t\tpost_id: 138,\n\t\tinstance: 1,\n\t\trender_1: true\n\t};\n\n\t\n\t(function( $ ) {\n\t\tm_chart_chartjs_138_1.render_chart = function() {\n\t\t\t$( '.m-chart' ).trigger({\n\t\t\t\ttype:     'render_start',\n\t\t\t\tpost_id:  this.post_id,\n\t\t\t\tinstance: this.instance\n\t\t\t});\n\t\t\t\n\t\t\tvar target = this.chart_args.options.animation;\n            \n\t\t\tvar source = {\n\t\t\t\tonComplete: function() {\n\t\t\t\t\t\/\/ This deals with an issue in Chart.js 3.1.0 where onComplete can run too many times\n\t\t\t\t\t\/\/ We only want to trigger on the first render anyway so we'll just check\n\t\t\t\t\tif ( false === m_chart_chartjs_138_1.render_1 ) {\n\t\t\t\t\t\treturn;\n\t\t\t\t\t}\n\n\t\t\t\t\tm_chart_chartjs_138_1.render_1 = false;\n\n\t\t\t\t\t$( '.m-chart' ).trigger({\n\t\t\t\t\t\ttype:     'render_done',\n\t\t\t\t\t\tpost_id:  m_chart_chartjs_138_1.post_id,\n\t\t\t\t\t\tinstance: m_chart_chartjs_138_1.instance\n\t\t\t\t\t});\n\t\t\t\t}\n\t\t\t}\n           \n\t\t\tif ( ! target ) {\n\t\t\t\tsource = {animation: source};\n\t\t\t\ttarget = this.chart_args.options;\n\t\t\t}\n\t\t\t\n\t\t\tObject.assign( target, source );\n\n\t\t\tChart.register( ChartDataLabels );\n\n\t\t\tthis.chart = new Chart(\n\t\t\t\tm_chart_container_138_1_canvas,\n\t\t\t\tthis.chart_args\n\t\t\t);\n\t\t};\n\n\t\t$( function() {\n\t\t\t$.when( m_chart_chartjs_helpers.init() ).done(function() {\n\t\t\t\tm_chart_chartjs_138_1.render_chart();\n\t\t\t});\n\t\t} );\n\t})( jQuery );\n<\/script>\n\n<p><strong data-start=\"881\" data-end=\"933\">1. Industrial Rent: The Most Expensive in Europe<\/strong><\/p>\n<p class=\"\" data-start=\"935\" data-end=\"1087\">At <strong data-start=\"938\" data-end=\"972\">\u00a3150 per square metre per year<\/strong>, the UK has the <strong data-start=\"989\" data-end=\"1016\">highest industrial rent<\/strong> in the dataset, almost <strong data-start=\"1039\" data-end=\"1070\">double the European average<\/strong>. For comparison:<\/p>\n<ul data-start=\"1089\" data-end=\"1144\">\n<li class=\"\" data-start=\"1089\" data-end=\"1107\">\n<p class=\"\" data-start=\"1091\" data-end=\"1107\"><strong data-start=\"1091\" data-end=\"1102\">Romania<\/strong>: \u00a340<\/p>\n<\/li>\n<li class=\"\" data-start=\"1108\" data-end=\"1127\">\n<p class=\"\" data-start=\"1110\" data-end=\"1127\"><strong data-start=\"1110\" data-end=\"1120\">Poland<\/strong>: \u00a352.5<\/p>\n<\/li>\n<li class=\"\" data-start=\"1128\" data-end=\"1144\">\n<p class=\"\" data-start=\"1130\" data-end=\"1144\"><strong data-start=\"1130\" data-end=\"1139\">Spain<\/strong>: \u00a365<\/p>\n<\/li>\n<\/ul>\n<p class=\"\" data-start=\"1146\" data-end=\"1404\">Manufacturers looking to establish or expand production facilities naturally gravitate towards countries where land and warehouse costs are affordable. In contrast, the UK&#8217;s inflated property market places an unnecessary burden on businesses from the outset. In the Article &#8220;<a href=\"https:\/\/the.apoplectic-politico.com\/index.php\/2025\/05\/20\/the-land-of-the-few-how-hidden-ownership-and-rigged-development-drive-britains-housing-crisis\/\">The Land of The Few<\/a>&#8221; I discuss how property prices and land value have served to parallel the decline in industry to the current housing crisis.<\/p>\n<p><strong data-start=\"1415\" data-end=\"1465\">2. Labour Costs: High Without the Productivity<\/strong><\/p>\n<p class=\"\" data-start=\"1467\" data-end=\"1701\">With an average <strong data-start=\"1483\" data-end=\"1517\">labour cost of \u00a327.50 per hour<\/strong>, the UK sits somewhere in the middle of the pack. While countries like Germany (\u00a342) and France (\u00a340) pay more, their <strong data-start=\"1636\" data-end=\"1700\">workforce productivity and infrastructure offset these costs<\/strong>.<\/p>\n<p class=\"\" data-start=\"1703\" data-end=\"1736\">By contrast, the UK suffers from:<\/p>\n<ul data-start=\"1737\" data-end=\"1885\">\n<li class=\"\" data-start=\"1737\" data-end=\"1780\">\n<p class=\"\" data-start=\"1739\" data-end=\"1780\">Lower vocational training and STEM uptake<\/p>\n<\/li>\n<li class=\"\" data-start=\"1781\" data-end=\"1832\">\n<p class=\"\" data-start=\"1783\" data-end=\"1832\">Shortages in engineering and manufacturing talent<\/p>\n<\/li>\n<li class=\"\" data-start=\"1833\" data-end=\"1885\">\n<p class=\"\" data-start=\"1835\" data-end=\"1885\">Productivity levels that have stagnated since 2008<\/p>\n<\/li>\n<\/ul>\n<p class=\"\" data-start=\"1887\" data-end=\"2082\">Meanwhile, countries like <strong data-start=\"1913\" data-end=\"1934\">Poland (\u00a310\/hour)<\/strong> and <strong data-start=\"1939\" data-end=\"1961\">Romania (\u00a311\/hour)<\/strong> offer extremely competitive rates with growing skill bases, making them more attractive for labour-intensive industries.<\/p>\n<p><strong data-start=\"2093\" data-end=\"2146\">3. Trade Difficulty: Post-Brexit Friction is Real<\/strong><\/p>\n<p class=\"\" data-start=\"2148\" data-end=\"2299\">Trade friction has become a defining barrier to investment in the UK since leaving the EU. The <strong data-start=\"2243\" data-end=\"2285\">UK\u2019s trade difficulty score sits at 16<\/strong>, compared to:<\/p>\n<ul data-start=\"2301\" data-end=\"2389\">\n<li class=\"\" data-start=\"2301\" data-end=\"2318\">\n<p class=\"\" data-start=\"2303\" data-end=\"2318\"><strong data-start=\"2303\" data-end=\"2314\">Germany<\/strong>: 11<\/p>\n<\/li>\n<li class=\"\" data-start=\"2319\" data-end=\"2335\">\n<p class=\"\" data-start=\"2321\" data-end=\"2335\"><strong data-start=\"2321\" data-end=\"2331\">France<\/strong>: 11<\/p>\n<\/li>\n<li class=\"\" data-start=\"2336\" data-end=\"2389\">\n<p class=\"\" data-start=\"2338\" data-end=\"2389\"><strong data-start=\"2338\" data-end=\"2353\">Netherlands<\/strong>: 6 (the easiest in this comparison)<\/p>\n<\/li>\n<\/ul>\n<p class=\"\" data-start=\"2391\" data-end=\"2633\">New customs declarations, product standards divergence, and cross-border delays all contribute to a <strong data-start=\"2491\" data-end=\"2553\">costlier, slower, and less predictable trading environment<\/strong>. For businesses that rely on fast-moving supply chains, this is a deal-breaker.<\/p>\n<p><strong data-start=\"2644\" data-end=\"2689\">4. Utility Costs: Energy Not Cheap Enough<\/strong><\/p>\n<p class=\"\" data-start=\"2691\" data-end=\"2854\">Energy is a vital consideration for industrial operations. The UK&#8217;s <strong data-start=\"2759\" data-end=\"2798\">electricity price of \u00a315 per 100kWh<\/strong> is middling, but not competitive when measured against:<\/p>\n<ul data-start=\"2856\" data-end=\"2907\">\n<li class=\"\" data-start=\"2856\" data-end=\"2873\">\n<p class=\"\" data-start=\"2858\" data-end=\"2873\"><strong data-start=\"2858\" data-end=\"2869\">Finland<\/strong>: \u00a38<\/p>\n<\/li>\n<li class=\"\" data-start=\"2874\" data-end=\"2888\">\n<p class=\"\" data-start=\"2876\" data-end=\"2888\"><strong data-start=\"2876\" data-end=\"2883\">USA<\/strong>: \u00a312<\/p>\n<\/li>\n<li class=\"\" data-start=\"2889\" data-end=\"2907\">\n<p class=\"\" data-start=\"2891\" data-end=\"2907\"><strong data-start=\"2891\" data-end=\"2902\">Romania<\/strong>: \u00a312<\/p>\n<\/li>\n<\/ul>\n<p class=\"\" data-start=\"2909\" data-end=\"3099\">For heavy industry and data-intensive operations like server farms and manufacturing, lower electricity prices are often the deciding factor in location decisions. The UK loses out here too.<\/p>\n<p><strong data-start=\"3110\" data-end=\"3166\">5. Corporation Tax: Not Unreasonable, But Not a Hook<\/strong><\/p>\n<p class=\"\" data-start=\"3168\" data-end=\"3311\">The UK\u2019s <strong data-start=\"3177\" data-end=\"3208\">corporation tax rate of 25%<\/strong> is lower than Germany\u2019s (29.9%) or Portugal\u2019s (30.5%), but it <strong data-start=\"3271\" data-end=\"3310\">falls far short of the lowest rates<\/strong>:<\/p>\n<ul data-start=\"3313\" data-end=\"3370\">\n<li class=\"\" data-start=\"3313\" data-end=\"3333\">\n<p class=\"\" data-start=\"3315\" data-end=\"3333\"><strong data-start=\"3315\" data-end=\"3326\">Ireland<\/strong>: 12.5%<\/p>\n<\/li>\n<li class=\"\" data-start=\"3334\" data-end=\"3352\">\n<p class=\"\" data-start=\"3336\" data-end=\"3352\"><strong data-start=\"3336\" data-end=\"3347\">Romania<\/strong>: 16%<\/p>\n<\/li>\n<li class=\"\" data-start=\"3353\" data-end=\"3370\">\n<p class=\"\" data-start=\"3355\" data-end=\"3370\"><strong data-start=\"3355\" data-end=\"3365\">Poland<\/strong>: 19%<\/p>\n<\/li>\n<\/ul>\n<p class=\"\" data-start=\"3372\" data-end=\"3514\">Corporation tax alone does not drive investment, but when paired with other burdens, the UK\u2019s relative lack of tax incentives becomes glaring.<\/p>\n<p><strong data-start=\"3525\" data-end=\"3566\">6. VAT and Regulation: Neutral Impact<\/strong><\/p>\n<p class=\"\" data-start=\"3568\" data-end=\"3729\">With a VAT rate of <strong data-start=\"3587\" data-end=\"3594\">20%<\/strong>, the UK aligns with much of Europe. While not particularly punitive, it&#8217;s not an area where Britain gains any competitive edge either.<\/p>\n<p class=\"\" data-start=\"3731\" data-end=\"3901\">More concerning is the <strong data-start=\"3754\" data-end=\"3780\">regulatory uncertainty<\/strong>. Ongoing divergence from EU standards creates confusion and extra compliance costs for companies trading across borders.<\/p>\n<p><strong data-start=\"3912\" data-end=\"3968\">Conclusion: The UK Has a Cost and Confidence Problem<\/strong><\/p>\n<p class=\"\" data-start=\"3970\" data-end=\"4162\">When considering where to locate an industrial facility, companies look at the <strong data-start=\"4049\" data-end=\"4081\">total cost of doing business, <\/strong>including rent, labour, energy, taxes, and trade access. On nearly every metric:<\/p>\n<ul data-start=\"4164\" data-end=\"4289\">\n<li class=\"\" data-start=\"4164\" data-end=\"4194\">\n<p class=\"\" data-start=\"4166\" data-end=\"4194\"><strong data-start=\"4166\" data-end=\"4194\">The UK is more expensive<\/strong><\/p>\n<\/li>\n<li class=\"\" data-start=\"4195\" data-end=\"4245\">\n<p class=\"\" data-start=\"4197\" data-end=\"4245\"><strong data-start=\"4197\" data-end=\"4245\">The regulatory environment is more uncertain<\/strong><\/p>\n<\/li>\n<li class=\"\" data-start=\"4246\" data-end=\"4289\">\n<p class=\"\" data-start=\"4248\" data-end=\"4289\"><strong data-start=\"4248\" data-end=\"4289\">The trade environment is more hostile<\/strong><\/p>\n<\/li>\n<\/ul>\n<p class=\"\" data-start=\"4291\" data-end=\"4349\">This is not a model that invites confidence or investment.<\/p>\n<p><strong data-start=\"4360\" data-end=\"4385\">What Needs to Change?<\/strong><\/p>\n<p class=\"\" data-start=\"4387\" data-end=\"4477\">If the UK hopes to compete again for industrial investment, it must address the following:<\/p>\n<ol data-start=\"4479\" data-end=\"4958\">\n<li class=\"\" data-start=\"4479\" data-end=\"4562\">\n<p class=\"\" data-start=\"4482\" data-end=\"4562\"><strong data-start=\"4482\" data-end=\"4515\">Lower business premises costs<\/strong> by incentivising industrial development zones.<\/p>\n<\/li>\n<li class=\"\" data-start=\"4563\" data-end=\"4647\">\n<p class=\"\" data-start=\"4566\" data-end=\"4647\"><strong data-start=\"4566\" data-end=\"4598\">Invest in workforce training<\/strong> and reverse the trend of declining productivity.<\/p>\n<\/li>\n<li class=\"\" data-start=\"4648\" data-end=\"4762\">\n<p class=\"\" data-start=\"4651\" data-end=\"4762\"><strong data-start=\"4651\" data-end=\"4695\">Resolve post-Brexit trade inefficiencies<\/strong> by aligning regulatory standards and digitising border procedures.<\/p>\n<\/li>\n<li class=\"\" data-start=\"4763\" data-end=\"4848\">\n<p class=\"\" data-start=\"4766\" data-end=\"4848\"><strong data-start=\"4766\" data-end=\"4789\">Reduce energy costs<\/strong> through infrastructure investment and renewable subsidies.<\/p>\n<\/li>\n<li class=\"\" data-start=\"4849\" data-end=\"4958\">\n<p class=\"\" data-start=\"4852\" data-end=\"4958\"><strong data-start=\"4852\" data-end=\"4885\">Offer targeted tax incentives<\/strong> for sectors the UK wants to lead in (e.g. green manufacturing, biotech).<\/p>\n<\/li>\n<\/ol>\n<p><strong data-start=\"4969\" data-end=\"4986\">Final Thought<\/strong><\/p>\n<p class=\"\" data-start=\"4988\" data-end=\"5198\">The UK is not just expensive, it\u2019s uncertain. Without decisive, reforms, Britain will continue to lose out to neighbours who offer lower costs, fewer trade barriers, and greater investor confidence.<\/p>\n<p>Whilst this article does not explore the technological impacts on economic trends that might otherwise<br>\ninfluence the choices businesses make when choosing their location, you might enjoy my article titled &#8220;<a href=\"https:\/\/the.apoplectic-politico.com\/index.php\/2025\/05\/13\/smart-data-unfair-outcomes-how-ai-is-reshaping-insurance-and-not-for-the-better\/\">Smart Data, Unfair Outcomes<\/a>&#8220;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Why Britain Is Losing the Race for Industrial Investment Despite government assurances about \u201cGlobal Britain\u201d and ambitions to become a world-leading hub for innovation and industry, the economic reality tells a different story. A closer look at key industrial costs across a range of countries shows that the United Kingdom has become one of the &#8230; <a title=\"Priced Out of Prosperity: Why Industry Is Leaving Britain Behind\" class=\"read-more\" href=\"https:\/\/the.apoplectic-politico.com\/index.php\/2025\/05\/19\/priced-out-of-prosperity-why-industry-is-leaving-britain-behind\/\" aria-label=\"Read more about Priced Out of Prosperity: Why Industry Is Leaving Britain Behind\">Read more<\/a><\/p>\n","protected":false},"author":2,"featured_media":111,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"sfsi_plus_gutenberg_text_before_share":"","sfsi_plus_gutenberg_show_text_before_share":"","sfsi_plus_gutenberg_icon_type":"","sfsi_plus_gutenberg_icon_alignemt":"","sfsi_plus_gutenburg_max_per_row":"","_bluesky_dont_syndicate":"","_bluesky_syndication_accounts":"","_bluesky_syndication_text":""},"categories":[3,2,149,105],"tags":[153,163,152,167,158,165,160,157,164,161,151,155,169,156,166,168,162,159,150,154],"_links":{"self":[{"href":"https:\/\/the.apoplectic-politico.com\/index.php\/wp-json\/wp\/v2\/posts\/108"}],"collection":[{"href":"https:\/\/the.apoplectic-politico.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/the.apoplectic-politico.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/the.apoplectic-politico.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/the.apoplectic-politico.com\/index.php\/wp-json\/wp\/v2\/comments?post=108"}],"version-history":[{"count":8,"href":"https:\/\/the.apoplectic-politico.com\/index.php\/wp-json\/wp\/v2\/posts\/108\/revisions"}],"predecessor-version":[{"id":163,"href":"https:\/\/the.apoplectic-politico.com\/index.php\/wp-json\/wp\/v2\/posts\/108\/revisions\/163"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/the.apoplectic-politico.com\/index.php\/wp-json\/wp\/v2\/media\/111"}],"wp:attachment":[{"href":"https:\/\/the.apoplectic-politico.com\/index.php\/wp-json\/wp\/v2\/media?parent=108"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/the.apoplectic-politico.com\/index.php\/wp-json\/wp\/v2\/categories?post=108"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/the.apoplectic-politico.com\/index.php\/wp-json\/wp\/v2\/tags?post=108"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}