Responding to the Chancellor's Budget Statement, chemical and pharmaceutical businesses today welcomed some steps in the right direction to address the needs of business.
Steve Elliott, Chief Executive of the UK Chemical Industries Association said "In our submission and meetings with government we have called for action in three key areas - government spending, business tax and the cost of energy. We want all three to be lower. On Tuesday the Chancellor announced the first two - government spending and business tax would be lower. On the third - energy and environment policies - the best we can hope is that it gets no worse".
"I am pleased about the messages on government spending and business tax which will enhance the view of the UK as 'open for business'. The long term commitment to reducing UK corporation tax is very much welcomed, and, whilst we would wish to see capital investment allowances retained at their current level, the delay in their reduction until that corporate tax reduction has begun to kick in, is a pragmatic response in these cash-strapped times" continued Elliott.
"The Budget statement indicates that the Finance Bill in the Autumn will introduce new qualifying criteria for the standard Landfill Tax. We look forward to working with officials over the summer to ensure a fairer regime for wastes where landfill is the most sustainable method of disposal. The reform of the Climate Change Levy should not further add to the significant cumulative impacts that climate change policy instruments are having on the energy costs of sectors that are exposed to international competition like chemicals. These costs are already expected to reach 75% of the wholesale electricity price and 40% of gas costs by 2020. At minimum, it will be important to ensure that the CCL relief's afforded to sectors exposed to global competition are maintained, but there is a strong case for increasing the relief on electricity for Climate Change Agreement participant."
Contact: Fiona Ferguson, 020 7963 6772, 07951388919,[email protected]
Notes to Editors
1. The Chemical Industries Association is the voice of the UK chemical and pharmaceutical industry. It has a membership of 150 companies, operating from over 200 sites in the UK.
2. The chemical industry contributes over £20million a day to the UK's balance of payments from a gross output of £50 billion per annum. It accounts for 1.5% of UK GDP, 12% of manufacturing's gross value added, and employs nearly 200,000 highly skilled people. The industry is global both in terms of markets and ownership, with over 70% of CIA's membership being foreign "headquartered".
3. A copy of the CIA submission to the budget is at:http://www.cia.org.uk/newsRoom.php?id=97
4. Steve Elliott, CIA Chief Executive, is available for comment, please call Fiona Ferguson on 07963 6772
Contact Name: Fiona Ferguson