Responding to today’s Budget Statement, the Chemical Industries Association has welcomed many measures – including recognition that the UK is in international competition for business investment - but said the failure to consider the cumulative costs of energy policies will reduce competitiveness and threaten British jobs.

Chief Executive of the Association, Steve Elliott said “many aspects of the Chancellor’s announcement will meet with business support, but for a large number of companies the costs of energy policies will remain a significant barrier to investing in Britain and competing globally”.

 Energy and Climate Change Policy

“Whilst the extension of the Climate Change Levy (CCL) Agreements until 2023 – the mechanism by which our sector’s energy efficiency has improved by 35% - and the restoring of previous CCL relief levels for power has provided some certainty, the Carbon Price Support (CPS) is bad news” said Elliott.

I acknowledge the Government’s recognition that we need long-term security of energy supply, but the CPS, as structured leaves energy intensive businesses such as chemicals at the mercy of unilaterally high energy costs for the next decade.

I want to see the UK become a truly low carbon economy and society, but we desperately need transition arrangements that are supportive for the very businesses like the ones I represent whose products and technologies deliver that low carbon future”.

Taxation

“The improvements in corporation tax, credit availability, confirmation of the patent box and research and development tax credits are all long-standing pillars of CIA lobbying - as such, we welcome them all.  

Science and Technology

“I applaud the Government’s commitment to science and technology to help secure UK economic growth. The new science facilities, the country’s first Technology and Innovation Centre for high value manufacturing and the Enterprise Zones offer tangible support for chemical businesses throughout the UK.“

Skills and employment

“The new focus on technical education, increased numbers of apprenticeships and the university technical colleges arising from the Wolf Report are good news for our industry and for investment in our country.”

Contact Name: Fiona Ferguson