CIA: Government spending plans are good in part but more focus needed to bolster growth
The Chemical Industries Association (CIA) continue to support government’s plan to tackle the country’s debt as the responsible course of action, but more emphasis is needed to help boost growth opportunities.
CIA today said that the Government’s spending plans for 2015/16 is good in part but called for more support for competitive energy and innovation to bolster growth.
Speaking today, CIA Chief Executive, Stephen Elliott said:
“We are pleased to see investment in our skills and technological future through the establishment of more university technical colleges, support for basic science and apprenticeships, as well as the below average cut of 6% to the Department of Business Innovation and Skill’s (BIS) budget”.
"We also welcome restated backing for developing UK shale gas reserves which in turn will support our vital future energy and feedstock security. But a larger compensation budget for EII’s power prices impacts in 2015/16 would have helped to ensure more competitive electricity for a wider range of chemical businesses and we need this measure to be predictable to 2020 and beyond”.
We remain concerned that the budgets for both compensation for climate policy impacts on energy intensive industries’ (EIIs) power prices and Technology Strategy Board (TSB) funding are inadequate and further detail is needed. Greater ambition is required if the economy is to be rebalanced towards sectors like chemicals which is UK manufacturing's top exporter and offers high growth potential. "
"TSB programmes will be a key contributor to future UK growth through the development of raw materials for the 21st century, smart manufacturing processes and formulated products and their enhancement should be a greater priority."
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