Destroying the Foundations: How Net Zero Could Wreck British Industry for Good

At the start of the 21st century, Britain boasted the fourth largest industrial economy in the world. Energy-intensive sectors such as steelmaking, oil refining, and chemicals employed over 800,000 people and peaked in output as late as 2002. These industries formed the backbone of national prosperity, driving productivity and supporting communities across the country. Over the last 20 years, however, they have been in decline, hit hardest by Britain’s Net Zero policy agenda.

Destroying the Foundations lays out the extent to which Britain’s foundational industrial economy is in freefall. Output has halved since 2000, and employment has fallen below 413,500 despite the UK’s overall population growth. While global factors like Chinese overproduction have played a role, domestic energy policy has been decisive. Net Zero commitments have driven electricity prices to the highest in the developed world, placing immense pressure on manufacturers. Entire sectors—from steel and cement to petrochemicals and fertilisers—are shrinking, with high-profile closures and job losses accelerating.

Energy-intensive industries are vital to Britain’s economic health, delivering high productivity and well-paid jobs in regions that need them most. Their collapse will lead to weaker growth, dependence on imports for essential materials, and it will ultimately undermine the advanced manufacturing and services sectors in the British economy as well. To reverse this trend, policymakers must prioritise cheap energy costs, repeal and reform of carbon levies, and support domestic production with a more competitive business environment. A strong industrial base is not optional—it is essential for national resilience and long-term prosperity.