Energy consumption by British factories fell to a record low in 2025, according to official data, reflecting a continuation of long-term trends and raising concerns about the state of the country’s industrial base. Industrial energy use dropped by 4.9%, equivalent to a decline of 0.9 million tonnes of oil equivalent (mtoe), reaching 17.3 mtoe last year.

The government attributed the decline primarily to improvements in energy efficiency and a structural shift away from traditional, energy-intensive manufacturing sectors such as steel toward higher-value activities like pharmaceuticals. Officials said similar patterns have been observed across many European countries since the 1970s, driven by technological advances and economic transformation.

Despite the official explanation, critics highlighted other factors contributing to the reduced industrial energy use. Some pointed to rising energy costs and the relocation of heavy industry operations abroad. The day before the figures were released, petrochemicals firm Ineos announced it was suspending production at several UK plants due to soaring energy expenses. Ineos’s owner, Sir Jim Ratcliffe, attributed the closures to government policies on net zero emissions, describing them as “economic vandalism.”

The government acknowledged that lower consumption of natural gas by metal and food producers also played a role in the overall decline. Additionally, academic studies have previously linked the decrease to decisions by manufacturing companies to offshore production, further reducing demand for energy within the UK.

The shadow energy secretary, Andrew Bowie, criticized the trend as a sign of deteriorating industrial competitiveness. He argued that the figures suggested British industry was abandoning the country because energy-intensive companies could no longer operate economically in the current environment. "Far from something to be pleased about," Bowie said, the data indicated a loss of critical manufacturing capabilities.

Calls to “reindustrialise” the UK have gained momentum amid the ongoing challenges faced by the sector, as underscored by recent factory shutdowns. The government was contacted for further comment on the energy data and the concerns raised but did not provide an immediate response.