New EU industry rules would damage UK, warns Burnham

Greater Manchester Mayor Andy Burnham warned European Commission President Ursula von der Leyen that the United Kingdom faces significant economic damage from the bloc’s planned industrial regulations. The warning highlights the growing friction for British businesses operating outside of the EU’s regulatory framework.

EU's Green Industrial Strategy

At the center of the issue is the EU’s Net-Zero Industry Act, a strategic policy designed to bolster Europe's domestic production of green technologies. Conceived as a response to subsidies in the United States, the act sets an ambitious target for the bloc to manufacture 40% of its clean technology, such as batteries, solar panels, and wind turbines, by 2030. This policy is intended to secure European supply chains and accelerate the continent's transition to a sustainable economy.

Competitive Disadvantage for Britain

For the UK, however, the legislation represents a considerable threat. By design, the rules will favor manufacturers based within the European Union, creating potential barriers for British companies. UK firms could find it more difficult to export their green technology products to the EU or to compete for inclusion in European supply chains. Burnham described the UK’s position outside this emerging industrial ecosystem as a “huge act of self-harm,” arguing it places British industry at a severe competitive disadvantage in critical growth sectors.

Call for Closer UK-EU Ties

The situation has prompted renewed calls for a revised UK-EU relationship. Burnham, leading a delegation of northern English mayors to Brussels, is advocating for stronger ties, suggesting Britain should consider rejoining the single market to mitigate the negative impacts. The visit underscores a growing regional effort to address the practical economic consequences of Brexit and secure a more stable trading environment for UK businesses. Without alignment, the UK risks being isolated as major economic blocs consolidate their industrial strategies for the green transition.