Budget 2015: energy intensive compensation brought forward
18 Mar 2015
Chancellor George Osborne used his final budget of this parliament to outline a number of measures to support UK manufacturing, including energy intensive sectors of the process industries.
In last year’s budget Osborne had announced the government would provide compensation to energy intensive industries for the impact on electricity prices from the feed-in tariff for small-scale renewables, but not until April 2016.
However, today he announced this compensation was being brought forward to the 2015-16 tax year.
“The Chancellor’s decision to bring forward compensation for industries facing vast and uncompetitive energy costs, such as steel makers, is welcome but the full package needs to be put in place as soon as possible,” said EEF chief executive Terry Scuoler.
“In addition he has committed to a stable and competitive tax regime, which we wholeheartedly support.”
Other areas of support included agreeing £60 million of funding for a new Energy Research Accelerator proposed by several universities in the Midlands, and confirmation of the previously announced Energy Systems Catapult centre in Birmingham.
Osborne also revealed that Manchester, with its strong manufacturing base and world leading research into advanced materials such as graphene, would be able keep 100% of the additional growth in local business rates.
The same business rates deal has also been offered to Cambridge, with its strong life sciences and pharmaceuticals research base.
In addition to these measures, Osborne also used the budget to unveil a £1.3 billion annual tax cut for North Sea oil and gas.
