Government pledges green tax cuts for heavy industry as energy prices soar

Heavy industries including steel and chemical plants in the UK are set to benefit from energy rates relief, as the huge rise in energy costs presents a “clear and present danger” of job losses, energy minister Michael Fallon will say today.

Fallon will say that current costs, which include green levies on businesses, are too high and are undermining Britain’s competitiveness.

Speaking just ahead of the Budget next week, Fallon will say: “Existing compensation and exemptions are not enough. We should look at relief from other policy costs.

“Without further action on energy costs the competitiveness gap between Europe and the US is becoming unbridgeable.”

The move follows pressure from manufacturers’ body the EEF, which called on the government to act to help employers.

The EEF argues that manufacturers should be exempt from paying the renewables obligation (RO), which has been in place since 2002.

Fallon will say: “Energy is one of the biggest costs for business, and a key factor in investment decisions. We have to recognise that energy costs are undermining our competitiveness; some energy-intensive sectors are struggling to compete internationally.

“The risk to jobs in the steel and chemical industries is now very real. There is a clear and present danger that we could lose jobs in these foundation industries just when we are beginning to see other jobs reshoring to the UK.

“Next week’s Budget gives us the chance to underpin our commitment to manufacturing.”

Want more? Follow us on LinkedIn

Now read:

One in three Scottish businesses could relocate after independence

Scotland money

Readers' comments (1)

  • Good. Common sense beginning to kick in at last. No proven link between 'climate change' formerly 'global warming' and our puny efforts at changing the course of nature.,

    Unsuitable or offensive? Report this comment

Related images

  • Business and enterprise minister Michael Fallon

Social Bookmarks