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‘Offset green taxes to aid industry’ – EFF

Tuesday August 2nd, 2011

The Government has been urged to compensate industry for the effect of green taxes in order to bolster UK manufacturing.

The EFF has argued that four green tax levies could see electricity prices rise by as much as 52% for industry. The effect, the EEF said, would be to put UK firms at a disadvantage when compared with competitors.

The Government has already agreed to offer industries that use large levels of energy some form of relief, but the EEF wants more action.

The manufacturing group has said that climate policies could be adding up to 52% to the electricity prices paid by industry by 2020. It pointed out that one measure alone – ­ the Carbon Price Floor (CPF) – ­ will cost manufacturing £250m a year when it is introduced in 2013, rising to £1.2bn by 2020. This is equivalent to one third of the sector’s entire spend on training at today’s prices.

Steve Radley, the EEF’s director of policy, said: “UK Industry was already facing energy bills which made them uncompetitive before the substantial additional burden of the unilateral carbon price floor. We have now reached a tipping point where the cumulative burden of UK climate change policy will make it uncompetitive for some sectors to invest and create jobs in the UK.

“Government must show that it recognises the impact of its combined policies on manufacturing by swiftly bringing forward measures to ensure these key sectors remain in the UK and continue to invest here.”

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