The chemical and pharmaceutical industry, the country’s biggest manufacturing exporter, has commented on the Chancellor’s Budget Statement.

The Chief Executive of the Chemical Industries Association (the organisation that represents chemical and pharmaceutical businesses across the UK) Steve Elliott said ”Our businesses will welcome the continued drive to make corporation tax more competitive, although they will be concerned by the accompanying reforms to loss relief which have allowed business in cyclical industries like ours to reduce the negative impacts of economic downturns. I am also pleased that measures like the patent box, capital investment allowances and R&D tax credits are being maintained. And the intent to map regional strengths through science and innovation audits is interesting”.

Elliott continued “I am, though, concerned that 15 months on from a 2014 Autumn Statement announcement confirming funding for a National Formulation Centre, we have heard nothing. This golden opportunity to cement world class performance for the long haul in a key science area – delivering sustainable skills, employment opportunities and revenue for the Country  - is being missed. This Budget was the time for confirmation and I do hope it follows soon”.

Elliott said “It is though on energy and environment taxation where the picture is incomplete, if not disappointing. We welcome confirmation that the Climate Change Agreements (CCAs) will continue and that energy taxes are being simplified by consolidating Carbon Reduction Commitment tax rates into the Climate Change Levy (CCL). It is also positive that the cap on Carbon Price Support (CPS)  rates has been extended for a further year to 2020/2021 (albeit with an increase for inflation).  However, from a competitiveness perspective, rebalancing CCL rates will edge up costs for those who are gas intensive as electricity prices continue to be hit by the unilateral CPS".

Ends

For further comment from Steve Elliott please call Simon Marsh on 07951 389197