UK Manufacturers Warn Chancellor Over Spiralling Energy Costs
Vital industries will be forced to invest overseas unless George Osborne acts to check the UK’s spiralling energy costs, manufacturers have warned the chancellor.
In its Budget submission, the EEF manufacturers’ organisation says energy prices and green taxes are worrying industry more than any other issue.
The chancellor is expected to freeze the carbon price floor, a tax on fossil fuels used to generate electricity, for up to four years in response to pleas to lower energy costs for industry.
But while that will bring some relief to a range of industries, it is unlikely to be enough to satisfy the most energy-intensive sectors such as steel and chemicals.
Half the 300 companies in an EEF survey said a government commitment to keep energy costs at, or below, the EU average would be the biggest single factor encouraging them to expand manufacturing in the UK.