A promise for tomorrow but very little today

The Chemical Industries Association (CIA) welcomes measures announced in today’s budget however industry says it falls short in addressing the pressing challenges faced by UK chemical businesses amidst global competition.

Steve Elliot, Chief Executive of the Chemical Industries Association said:

“As the sector that is the UK’s second largest manufacturing exporter,  we welcome the extension of full expensing to leased assets and the overall recognition of manufacturing, as well as the improvements to childcare benefits that will allow more people to take on more skilled jobs. After November’s autumn statement, today’s budget was another step in the right direction for supporting investment and growth, but, frankly, it’s a limited and long-overdue step.  UK chemical businesses are facing huge competition from other parts of the world in terms of cheaper energy costs and more competitive and stable investment climates, so I remain at a loss over how we compete NOW.  We are ready to play our part in delivering those critical clean-tech solutions for society, but we need far greater urgency and ambition, framed around an industrial strategy for our country and our sector”.

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• Businesses who make chemical products and solutions are integral to something like 96% of all manufactured goods.  Whether it is ingredients for food and medicines; paints and coatings for cars and planes or materials for mobile phones and electric vehicle batteries, the chemical industry is truly the “industry of industries” – also playing a critical role in the nation’s response to Covid-19 through its supply of hand sanitiser, PPE and vaccine ingredients.

• Chemical businesses are located throughout the UK, with many of them clustered together in the North East of England, North West of England and Central Scotland.  These factories and laboratories, operated by a highly trained and skilled workforce, make a significant contribution towards the UK’s productivity performance.  

• Roughly 140 thousand people are employed in the sector and nearly half a million have roles that are dependent on the sector. Chemical workers typically earn around 21% more than other manufacturing industries and almost 27% more than the average worker.

• From Runcorn to the Humber Bank; from Teesside to Grangemouth, chemical businesses and their employees right across the country are essential to the Government’s levelling-up agenda.

• We are the country’s second biggest manufacturing exporters, sending goods to the value of more than £60 billion to other countries. The EU represents our most important market, but we continue to work closely with Government to inform and secure UK trade deals with other key chemical markets such as Japan and the USA