The chemical industry has warned that today’s budget statement by the Chancellor of the Exchequer is a missed opportunity to provide a boost to UK economic recovery. Despite welcoming some parts of the budget, too many proposals are delayed, lacking in detail or simply conspicuous by their absence.
Steve Elliott, Chief Executive of the Chemical Industries Association, said "I am afraid this Budget will be a major disappointment to chemical and pharmaceutical businesses across the UK. I am particularly angry that existing money has not been redirected to help temporary lay-offs and short time working. In every major competitor country, businesses and workforces get support to help make sure skills are kept up to date with funds for training during short time working and layoffs. The Government has billions of pounds tied up in its training funds. While I welcome the help for the unemployed, money also should be used to retain key skills of people in work, prevent further unemployment and help accelerate the recovery.
On finance I welcome the £750 million fund to support emerging technologies and high tech manufacturing. The chemical sector is an integral part of the future of manufacturing in this country and we look forward to our industry receiving the appropriate recognition and support to grow its many innovative technologies. I was also pleased to see support for capital allowances, but while I welcome the doubling of the tax relief, we also needed an increase in the annual investment allowance for smaller companies.
Energy security is a major worry for the UK. For many years we have been calling for urgent investment in gas storage, incentives for combined heat and power (CHP) and investment in carbon capture and storage and I am pleased to see some acknowledgement of that today. On gas storage we must see words put into immediate action to bring us in line with our major competitor countries. As demand for gas inevitably increases, I am afraid that high and volatile prices will follow unless and until our storage constraints are addressed. The removal of CHP from the Climate Change Levy (CCL) is welcomed. CHP has a vital role to play in improving energy efficiency so we believe the Chancellor should have exempted it from CCL with immediate effect rather than waiting until 2013.
Contact Name: Fiona Ferguson