President Donald Trump’s ambassador to the UK has warned that high energy costs are discouraging investment into Britain, as businesses weigh up where to deploy capital amid a volatile global economic backdrop.
Speaking at the British Chamber of Commerce (BCC), US ambassador Warren Stephens said American firms are raising concerns about the cost of operating in the UK when making investment decisions.
He said: “I believe it is a real strength of our relationship with the United Kingdom that we’re willing to have difficult conversations to make our country stronger and more prosperous.
“It’s why when pharma companies say pricing structures and regulations are preventing UK consumers from accessing innovative American drugs and sometimes other drug companies, we see it as our duty as an honest broker to pass these concerns to the people able to move the aisle.
UK energy costs ‘too high’ for US investors, Donald Trump’s ambassador has warned
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“Or when US businesses say energy costs are too high for them to make investments here, we want to make sure UK decision-makers are aware of those concerns.”
The comments come as UK businesses continue to face elevated energy bills compared with historical levels, despite recent falls in wholesale prices. Costs remain a key factor for energy-intensive industries and manufacturers, particularly as global competition for investment intensifies.
Mr Stephens indicated the issue over high energy bills is not limited to overseas firms, adding: “And frankly, that is a concern of UK companies as well.”
Energy prices have been a persistent challenge for the UK economy since the post-pandemic surge and the shock to global markets following Russia’s invasion of Ukraine.
The Iran war has caused major disruption across the globe | GETTY
Rising energy bills are putting further pressure on businesses | PA
While prices have eased from their peak, businesses are still contending with higher input costs alongside wider pressures, including supply chain disruption, higher borrowing costs, and geopolitical uncertainty linked to conflicts in the Middle East.
The ambassador suggested the UK has scope to exert greater control over its domestic pricing through supply-side measures.
He said: “Because the UK could certainly have more influence over its domestic energy pricing, if not be a price setter by using its domestic fossil fuel reserves.”
His remarks come as policymakers continue to balance energy security, affordability, and the transition to lower-carbon sources, with investment decisions increasingly sensitive to cost stability.
Sir Keir Starmer has been pictured meeting US ambassador Warren Stephens | X
On energy strategy, Mr Stephens said: “The solution here is energy addition, not subtraction.” He noted that a mix of energy sources would be required to support economic growth and industrial demand. The US ambassador asserted that “in the modern economy, we need all forms of energy on the table, including oil and gas”.
Labour’s Investment Minister Lord Stockwood, who also spoke at the BCC earlier today, reiterated that “nothing has changed” between the US and UK Governments when it comes to dealing with the economy.
His intervention comes as President Trump slates NATO allies, including the UK, for not joining the US and Israel in taking military action against Iran.
The peer said: “In Davos, while all that stuff was going on about Greenland, I met seven of the biggest CEOs and businesses in the US. Genuinely, and to simplify this, politics will do what it’ll do, and we will have to deal with that. But, on a day-to-day basis, businesses still want to invest here, businesses still want to come here.”