Chemicals industry renews budget plea
18 Mar 2014
The chemicals industry has renewed its calls for Chancellor George Osborne to cut the cost of energy for manufacturing in tomorrow’s annual budget.
Trade body the Chemical Industries Association has urged Osborne to freeze or roll back a number of climate change-related levies for energy intensive companies such as chemicals and petrochemicals firms.
CIA chief executive Steve Elliott said the changes were needed to help industry plans to grow by 50% by 2030, and to avoid further site closures.
Companies will simply relocate and in take employment opportunities to other countries
CIA chief executive Steve Elliott
“We cannot continue to load costs on to an industry that needs to be internationally competitive and expect substantial growth to be delivered,” said Elliott.
“Companies will simply relocate and in the process take employment opportunities to other countries – its already happening and I don’t want to see any more of it.”
Tata Chemicals Europe closed its Winnington soda ash plant and calcium chloride plants in Cheshire at the end of last year, blaming high energy costs.
The CIA’s budget submission to Osborne, which can be viewed via the link at the side of this page, claims to represent the chemical and pharmaceuticals industries’ views. It calls for action on four key points:
- extending the compensation package for energy intensive users
- freezing the Government’s Carbon Price Floor mechanism
- incentivising combined heat and power
- exemptions from other subsidies for renewable electricity
The demands echo calls by the EEF earlier this month for a freeze on the Carbon Price Floor mechanism.
Osborne will deliver his budget statement at 12.30pm tomorrow. It can be viewed live on Parliament TV.
