UK chemicals makers welcome "positive" budget measures

London – The Chemical Industries Association sees "many positive points for chemical manufacturers" in the first budget delivered by the UK's new Labour government on 30 Oct.

These, it said, include action in industrial strategy, net-zero growth, investment in people and innovation, as well as support for the UK's aerospace, automotive and life sciences industries.

"We are pleased to see increases in investment," said CIA head of economics Michela Borra, noting that the UK has been in the bottom of the G7 for investment as a share of GDP for many 30 years.

Other welcomed steps include the earmarking of £2 billion over five years for zero-emission vehicles manufacture and related supply-chain, and £350-million carbon tax relief for energy-intensive industries.

Confirmation of £163-million in support for  industrial energy transformation fund was also welcomed, as was funding for carbon capture & storage and 11 green hydrogen plants.

Capital-intensive sectors such as chemicals will welcome the government’s commitment to longer-term policy stability, CIA chief executive Steve Elliot further noted.

In particular, Elliot was encouraged by measures around the UK’s industrial strategy, corporation tax roadmap and support for investment in plant and equipment. 

But, added the CIA leader, “it’s now all about delivery as the UK and wider Europe has become increasingly unattractive to global investors in manufacturing.”

Elliot concluded with a call for closer partnership between industry and government to enable UK chemical makers “to boost their already significant contributions to the macro-economy... and transition to a net-zero future.”