Chancellor George Osborne must use his upcoming Budget to “mount an all-out attack” on rising energy prices, according to manufacturers’ organisation EEF.
In its Budget Submission, issued on 24 February, EEF said that energy prices were a key driver of business costs. The organisation highlighted the government estimates that suggest that climate change policies will increase industrial electricity prices by 50% by 2020. It warned that, without urgent action, by the end of the decade many of the UK’s heavy industries would likely relocate to countries with less stringent environmental protections – and lower energy costs.
Extend compensation package
EEF called on the government to extend, through to 2020-21, all measures in the current compensation package for energy-intensives. But it also said the package should be expanded to exempt heavy industries from costs arising from the Renewables Obligation and Feed-in Tariff schemes.