Energy-intensive industries such as steel, glass, ceramics and paper in the UK are suffering as wholesale gas prices in Europe soar.
On Friday, a number of UK industry leaders held talks with Kwasi Kwarteng, minister of state for Business, Energy and Industrial Strategy. They warned that they would be forced to shut down production unless the government took action against the surge in wholesale gas prices.
Gareth Stace, director of UK Steel, a trade body, said: "If the government doesn't do anything, then basically we're going to see more frequent shutdowns in the steel industry for longer periods of time."
Andrew Large, director of the Confederation of Paper Industries, also said he could not rule out the possibility that factories would have to suspend production because of rising energy costs.
David Dalton, of the British Glass Manufacturers Association, said some Glass companies were only days away from shutting down production.
Speaking after a meeting with industry leaders, Mr Kwoten said he was determined to ensure a competitive future for Britain's energy-intensive industries. He pledged to continue to work closely with businesses in the coming days to further understand and help mitigate the impact of any cost increases they face.
However, some lawmakers within the ruling Conservative Party want to do more for energy-intensive industries.
Andrew Bridgen, a Conservative MP, said: "I want the government to provide more support to these industries in the short term to ensure they do not pull out of the UK or deter further investment... I think they want to see a cap on energy prices."
The UK economy is already struggling with a supply chain crisis. The post-Brexit shortage of workers, coupled with economic pressures from COVID-19, has led to shortages in supply chains across industries from fuel and pork to poultry and bottled water, hampering economic recovery from the pandemic.
