Utilities’ business investment fall is nearly twice the average for UK industries say analysts
15 Jun 2021
Latest ONS data shows business investment in UK utilities sector fell by almost a quarter last year, drastically underperforming the national industrial average, suggests tax relief specialist Catax.
Business investment by electricity, water and gas companies plunged by 24% or £4.2 billion – reducing from £17.4 billion in 2019 to £13.2 billion in 2020.
Overall UK industry while underperforming, managed to do better with a 10.2% fall last year compared with 20192. The sector also recorded a big slump in the final quarter of the year. Total business investment in Q4 2020 only reached £3.6 billion in Q4 2020, which was down 20.1% (£894 million) year on year.
UK GDP had its worst annual performance since records began, owing to the consequences of the Covid crisis. In 2020 it declined 9.8% compared with the previous 12 months.
Catax CEO Mark Tighe, remarked:
“The utilities sector has seen business investment evaporate and is struggling when compared with UK industry as a whole.
“It is as dependent on this kind of investment for long term stability and returns as any other, and investors and customers will be watching closely to make sure that a return to normal levels of investment is on the horizon as pandemic restrictions ease this year.”