Warning soaring energy costs could lead to 48,890 job losses

ALMOST 50,000 jobs in Yorkshire are at risk from soaring energy bills, new analysis has found.

Research by Labour suggested that 48,890 industry jobs – more than 2.1 per cent of the total in the region – will be severely affected by rising bills due to their high energy usage.

Energy-intensive industries such as glass, steel and ceramics are found in more Red Wall seats according to the party, with seats such as Scunthorpe having one job in seven at risk from rising prices.

Labour this week announced a £1bn fund to support these businesses alongside plans to cut businesses for smaller companies.

The plans would be funded by a £2bn raid on the most profitable global tech companies, through an increase in the Digital Services Tax (DST) this year.

Jonathan Reynolds, the Shadow Business Secretary, said: “Energy costs are rising, placing jobs and businesses at risk while the Government is missing in action, unable to offer any solutions after a decade of failure to insulate our energy supply from shocks.

“Labour will act to secure the future of Britain’s greatest industries, like glass, steel, and ceramics, all while protecting our high street firms as well.

“Labour’s plan will help consumers and businesses weather this crisis in the short term, and we will fix the broken energy market to support British industry for decades to come.”

It comes as inflation reached a 40 year high of 10.1 per cent, adding further burdens to families and businesses.

The spike was worse than predictions by analysts, and came amid warnings that neither Tory leadership candidate has the policies to lead the country to a better financial future.

The Institute for Fiscal Studies (IFS) today has warned that high inflation and interest rates will push up public spending, including on benefits and pensions.

This, combined with weak economic growth, is likely to offset the effect of an expected increased tax intake. But IFS deputy director Carl Emmerson said: “The reality is that the UK has got poorer over the last year.

“That makes tax and spending decisions all the more difficult. It is hard to square the promises that both Ms Truss and Mr Sunak are making to cut taxes over the medium term with the absence of any specific measures to cut public spending and a presumed desire to manage the nation’s finances responsibly.”

A Truss campaign source, discussing the warning from the IFS, said that as prime minister, Ms Truss “would use an emergency budget to kickstart her plan to get our economy growing and put more money into the pockets of hardworking people”.

A Sunak campaign spokesman said the IFS analysis “drives a coach and horses through Liz’s economic plan”.

“Rishi has consistently made the case that permanent, unfunded tax cuts would cause significant damage to the public finances.”

Labour will act to secure the future of Britain’s greatest industries. Jonathan Reynolds, the Shadow Business Secretary.