Steve Elliott, Chief Executive of the UK Chemical Industries Association (CIA) has urged the Chancellor of the Exchequer to boost manufacturing in his budget next week. Elliott was speaking to chemical and pharmaceutical business leaders in the run up to the Budget Statement.

Elliott said, "The chemical and pharmaceutical businesses that I represent across the UK need action in three key areas that will then help lead the economic recovery for our country".

CIA is calling for action on finance & credit availability, business taxation and energy.

Finance and credit availability for essential investment for the future:

• Ensure that robust businesses have access to finance at competitive rates - absolutely critical as we emerge from recession
  
  
• Investment in capital intensive industries should be stimulated by increasing the Annual Investment Allowance to £150,000

A more competitive and simplified business taxation regime:

• A competitive and predictable tax regime that demonstrates that the UK is a good place to do businessA phased reduction in corporation tax to 25% by 2015, 20% by 2019
  
  
• The planned increase in National Insurance is reduced back to current levels after a temporary period
  
  
• Implement the Patent Box regime earlier than 2013 to keep R&D, innovation and supply chains in the UK

Energy supplies that are reliable, secure, sustainable and competitively priced:

• The slashing of the Climate Change Levy rebate, payable to energy saving businesses, from 80% to 65% is reconsidered and kept at a more realistic figure
  
  
• A significantly reduced contribution from industry to the cost of subsidies for low carbon energy. Government proposals threaten to add over 70% to wholesale electricity prices and 40% to gas by 2020
  
  
• The Renewable Heat Incentive costs do not fall disproportionately on businesses

Elliott added "our sector has a huge percentage of businesses headquartered overseas, so it is vital that the UK is, and is seen to be, a good place to do business. This means benchmarking the UK 'business offer' against competitor countries, facilitating access to finance and credit, delivering a competitive and simplified tax regime and securing competitive and sustainable supplies of energy. If the Chancellor helps deliver on these key issues, then I believe chemical and pharmaceutical businesses can help deliver the UK's economic recovery".

For a full copy of the budget submission click here: