Manufacturers have demanded action from Chancellor George Osborne to compensate companies put out of pocket by climate change policies. EEF, the manufacturers’ organisation wants a “compensation package” to be included in the Chancellor’s Autumn forecast, due at the end of November.
The energy intensive industry has been vocal in its disappointment over the Treasury’s carbon floor price. Dubbed a ‘carbon tax’ by critics, some have worried that it may damage Britain’s competitiveness as a location for businesses compared to other countries with no such policy.
Terry Scuoler, EEF’s Chief Executive said: “Manufacturers are looking to invest but they need to see Government take the right decisions on issues such as boosting competition in the banking sector, reducing employment regulation and addressing the cost of fighting climate change.”
He warned that the biggest threat to reducing the UK’s deficit comes from weak growth: “Failure to act now will only make the future challenges even bigger and risks undermining our hard-won fiscal credibility.”
In response, the Treasury tried to placate the big energy users by suggesting that some sort of compensation could be on the cards.
A spokesperson said: “The Government recognises the need to support energy-intensive industry, which is why we have already established a discount on the climate change levy and reduced corporation tax. The Treasury and other departments are working on a further package of measures to be announced later this year.”