The chemical industry has been left somewhat disappointed by today's Spring Statement, delivered by Chancellor Rishi Sunak.
Whilst we welcome some measures such as commitment to create conditions for economic growth, reform of R&D tax reliefs and increase to the employment allowance, a huge problem was not tackled or mentioned by Government - support for business on energy costs.
Steve Eliott, the Chief Executive for The Chemical Industries Association, that represents chemical companies in the UK said: "We urgently await not only the delayed ‘Energy Security Plan’ that the Chancellor referred to, but also the long-promised Government confirmation of the future compensation scheme for energy-intensive businesses faced with significant indirect carbon costs. The existing scheme closes in a matter of days, leaving huge uncertainty for our companies having to compete globally, including EU competitors now benefiting from increased support from the Commission."
For more information please contact Simon Marsh at [email protected] or 07951 389197.
- 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 – 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 35% more than other manufacturing industries and 54% 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 biggest manufacturing exporter, sending goods to the value of more than £57 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.