“The time for talking is over. The time for action is now,” he said. “Britain faces deindustrialisation unless manufacturers get relief from high energy prices. Electricity and gas in the UK are far too expensive and it’s costing our country steeply. We cannot afford to be delayed by political upheaval, or by further consultations.”

Almost half (46%) of industrial companies have been hit by a further increase in their energy bills since the start of the conflict in the Middle East, with six in 10 passing this rise on to customers, according to the survey. However, despite raising prices, almost all companies (98%) told Make UK that they expected to experience a significant squeeze on their profitability over the next quarter.

In response to falling profit margins, almost four in 10 (38%) companies have delayed investment and more than a fifth (21%) have reduced their headcount, according to the survey.

About 800 of the UK’s 130,000 manufacturing companies are large and mostly foreign-owned. Phipson said larger businesses were moving production overseas to countries in mainland Europe and Asia where they could benefit from cheaper energy costs, while mostly smaller domestic firms were forced to cut investment and jobs to stay afloat.

Paul Nowak, the TUC general secretary, joined Make UK’s call for action, saying thousands of well-paid jobs, many in some of the poorest areas of the UK, were at risk. He called for the Bics scheme to be expanded further “to protect jobs and keep factories and plants running”.

Britain’s gas and electricity prices are intertwined because of a system of marginal pricing that means gas used in electricity generation, which mostly comes from renewables and nuclear, dictates the final price of electricity. The government recently indicated that it planned to review the policy but has yet to outline how and when marginal pricing could be abolished or reformed.

The UK is more reliant on gas than other countries. A report by the House of Commons library earlier this month showed that in 2024, gas accounted for 30% of the UK’s electricity generation compared with 16% in Germany and 3% in France.

Phipson said the survey found that more than half of respondents had yet to see any benefits from the government’s industrial strategy set out last summer.

A government spokesperson said: “Our manufacturing industries are vital to the UK’s success and economic growth, but we recognise the challenges they are facing, including on the cost of energy.

“We are tackling this through our modern industrial strategy, cutting electricity costs for industries across Great Britain, and announcing new support for the chemicals and ceramics industries. We will continue to work closely with manufacturing businesses across the UK to ensure we’re doing what we can to help them through tough times.”