The chemical industry has urged Parliament to find a way to rescue the UK’s future relationship with the European Union. The inability to agree a withdrawal agreement prolongs the uncertainty for business and further damages the UK investment climate. This situation needs urgent and positive resolution if we are to secure our economic future.
Steve Elliott, Chief Executive of the Chemical Industries Association said “as we await the Chancellor’s Spring Statement and the vote on whether a possible no-deal outcome remains a UK possibility, the economic storm continues. What many call a rocky period or a temporary blip, is much more serious. Businesses have choices and no-deal contingency plans are increasingly being turned into action. We still have a little time to get this right - especially if this week’s political events lead to a rejection of no-deal and an extension to Article 50 - but that time needs to be meaningful if business is to retain confidence in this political process and the UK as a credible investment location”.
For further information, please contact CIA's Simon Marsh on 07951 389197 or [email protected]
About the UK chemical industry
- The chemical and pharmaceutical industry adds £18 billion of value to the UK economy every year from total annual turnover of £50 billion.
- In addition to gross value added, the sector also contributes to the UK economy in its position at the head of many supply chains within manufacturing and its employment of a well remunerated, high-skilled workforce. We support 500,000 jobs both directly and indirectly Chemical manufacturing adds £9 billion in gross value added annually and pharmaceutical manufacturing £9 billion.
- The wider chemical and pharmaceutical sector (manufacturing plus distribution) is the largest exporter of manufactured goods with annual exports of over £50 billion. The export of motor vehicle, trailers and semi-trailers is the sector with next highest exports of £35 billion. Aerospace is £32 billion.
- 63% of companies in the sector export what they make to the world, the highest proportion of any goods manufacturing sector in the UK economy. 60% of our exports go to the European Union and 75% of our imports and raw materials come from the European Union.
- The sector’s level of business investment is £4.3 billion, compared to automotive £2.7 billion and aerospace £2.1 billion, while the expenditure on research & development is £5.0 billion (automotive £2.7 billion and aerospace £2.1 billion).
- The products and technologies of the Chemical industry are essential parts of medicines, food & drink, telecommunications, energy-saving, I.T, clothing and much more.
- For every tonne of Greenhouse Gas (GHG) emitted, our products and technologies enable over 2 tonnes of GHG emissions savings.