The chemical and pharmaceutical industry – Britain’s top manufacturing exporter – has urged the Chancellor to make sure his words support economic growth. Responding to the Chancellor’s 2013 Budget statement, the industry’s trade body, the Chemical Industries Association, has welcomed further moves to support shale gas development but called for more action to stem spiralling carbon costs.

Steve Elliott, the Chief Executive of the Association, said “Today’s budget takes further steps to underpin a manufacturing resurgence by supporting shale gas development, and increasing the ‘above the line’ Research  & Development tax credit. But we need more certainty that industry will be fully compensated for spiralling carbon costs.  Better still leave the other electricity market reforms to support the development of low-carbon power”.

He continued “We welcome the Chancellor’s announcements on shale gas (including planning and working with local communities) as the urgent development of this resource can help to underpin our Country’s energy security and provide a much needed source of UK raw materials to industry”.

Elliott was critical though of spiralling carbon costs. “However, the UK-only element of the Carbon Price Floor is set to double in 2015/16 and this will damage our competitiveness unless the government  can fully compensate a broad range of energy intensive activities and guarantee this on a longer term basis so our members can plan with certainty”.

He concluded “Acting now on these measures and more will enable our industry to grow and deliver the products and technologies that are essential to UK manufacturing and the green economy”.

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Notes to Editors:

The Chemical Industries Association is the organisation that represents chemical and pharmaceutical businesses located throughout the UK www.cia.org.uk

For an interview with/further comment from Steve Elliott please call Simon Marsh 07951 389197