Calls for government support for energy-intensive industries

05.08.11

A leading industry representative has called for the UK Government to ensure that its most energy-intensive manufacturers are not undermined by rising energy costs and stringent carbon emissions policies.

The CBI, which speaks for companies which between them employ over a third of the private sector workforce, says that driving the price of carbon up will cause UK manufacturers to base themselves elsewhere.

Katja Hall, CBI Chief Policy Director, said:

“Energy intensive industries underpin the UK’s manufacturing sector, making products as diverse as the steel and chemicals needed for wind turbines and low-rolling resistance tyres.

“The Government is in serious danger of throwing out the baby with the bathwater if it continues to pile new costs onto industries that are responsible for hundreds of thousands of jobs and bring in £15bn to the UK economy every year.

“Unless the Government acts swiftly, there’s a real risk that these companies will decide it’s not cost effective to remain in the UK and simply relocate elsewhere.”

To read the full story, click here.