UK autumn budget shows insufficient action on energy: CIA

05 December 2013 16:41  [Source: ICIS news]

LONDON (ICIS)--The UK government’s latest update on its economic plans does not provide sufficient answers to the issue of rising energy costs, trade body the Chemical Industries Association said on Thursday.

Association head Steve Elliot applauded UK chancellor George Osborne’s decision, unveiled in the annual Autumn Statement on Thursday,  to offer a favourable tax regime for shale fracking and increased support for science and engineering apprenticeships.

However, he claimed that the CIA’s target of 50% growth for the chemicals industry by 2030 would be impossible without more effort being taken by the UK government to secure affordable energy supplies.

“In particular, we need to see the promised rebates from the range of climate policies impacting on our power prices made broader and deeper and in a way that provides better long term business certainty for investment,” he said.

“This should start with the UK-only Carbon Price Floor (CPF) but needs to extend to all policies if we are to compete with Germany, which offers full rebates, or the US, whose energy prices are already a third of ours due to shale gas,” he added.

By: Tom Brown
+44 208 652 3214

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly