CIA | Economics

Economics

  Contact the team

 


For economics related enquiries, please contact:

 

Michela Borra

[email protected]

Our sector is critical to the UK economy. Our companies drive innovation and deliver real advantages to high-value downstream industries and society. We work alongside member companies to build a broad understanding of our industry’s economic contribution. We contribute to ensuring a sustainable industry through the work of the Chemistry Council and by influencing UK Government policy through engagement on the Budget, Calls for Evidence, and numerous Government departments. We aim to ensure continued growth in the chemical sectors’ contribution of £30.3 billion in annual value add to the UK economy, equivalent to an impressive 13.8% of all manufacturing. The sector is a major exporter of goods and is a significant job creator, with 151,000 employed in high-quality, well-paid jobs across the UK.

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 – double that of any other manufacturing industry and triple that of any part of the UK economy.

Nearly half a million people are employed in the sector or have roles that are dependent on the sector. Chemical workers typically earn 33% more than other manufacturing industries and 45% more than the average worker.

We are also one of the country’s biggest manufacturing exporters, sending goods to the value of more than £54 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. 

 

 

 

 

 


CIA Quarterly Economic Reports

At the CIA, we undertake a quarterly business survey of our membership. The data collected, and official data provided by the Office for National Statistics, is then presented back to members for further analysis. A comprehensive economic report is then published, looking in detail at the topics discussed by members, in addition to the economic performance of the prior quarter and forecasts for the future.

2021

First quarter (April 2021)

Second quarter (August 2021) 

Third quarter (December 2021) 

2022

Fourth quarter (April 2022) 

First quarter (June 2022) 

Fourth quarter (November 2022) 

2023

First quarter (February 2023)

Second quarter (May 2023)  

Third quarter (August 2023)  

Fourth quarter (November 2023)  

2024

Fourth Quarter (February 2024)  

CIA Quarterly Economic Report Q1 2024


 

Economic capability of the CIA

The CIA have a multitude of databases on topics including but not limited to: Trade, Production, Labour Statistics, Regional Analysis and R&D and Investment. This gives us the ability to provide colleagues and members with timely reliable data on any economic topic within the chemical industry.

 


Letters to Government

 

Chemical industry proposals for post COVID-19 recovery

 


CIA Spring Budget Submission 

 

On March 15, the Chancellor of the Exchequer Jeremy Hunt, will deliver his Spring Budget 2023, setting out plans for the Government’s taxation and spending over the next financial period. Ahead of the Budget, the Chemical Industries Association submitted a Budget Representation to the Treasury on behalf of the UK chemical and pharmaceutical industry.  The content of the CIA’s Budget Representation was guided by CIA member companies who replied to the CIA Q4 Business Survey, which was live between 9-20 January 2023.
 
In our submission, the CIA asked Government for action in five areas:

  1. Energy: Increase Energy Intensive Industry (EII) exemption aid intensity to 100%, pursue Review of Electricity Market (REMA) reforms, ensure Climate Change Agreement (CCA) reform does not remove carbon leakage mitigation, launch consultation on UK Carbon Border Adjustment.
  2. Investment incentives: Compete with US’ Inflation Reduction Act (IRA) and EU’s soon to be confirmed response. To follow the Super Deduction - full expensing of main rate plant and machinery in the first year and a 50% first year allowance for special rate plant and machinery.
  3. REACH: A more cost-effective UK registration system, revision of UK REACH fees so that they are proportionate rather than identical to EU REACH.
  4. Sustainability / net zero: Streamline sustainability reporting, set-up of a UK ETS innovation fund from its auctioning revenue, provide a clear signal for deploying hydrogen and CCS infrastructure in the remaining cluster
  5. Business Taxes: Focus on improvements to simplicity, generosity and scope of the apprenticeship levy, R&D tax credits and business rates

 

CIA Budget Representation 2023