Ineos and manufacturers criticize Labour budget for inadequate energy support
Industry groups say the budget's energy measures do not address high industrial costs, warning they could worsen the decline of British manufacturing.
The Labour government announced extensions to a VAT cut on domestic electricity, the removal of standing charges on gas bills and a scheme to reduce electricity costs for 10,000 eligible firms. While the chancellor said further energy reforms will follow, business leaders argued the steps do not tackle the core problem of high energy prices.
Ineos described the budget as "a major missed opportunity to save British manufacturing" and said the government "knows that Britain's industrial base is being destroyed by some of the highest energy costs in the world, yet it has failed to take the decisive action needed to stop it." The company added that reductions in electricity costs "barely scratches the surface" and that punitive gas prices and carbon taxes are harming British chemical manufacturers.
"Factories are closing, thousands of skilled jobs are being lost and investment is moving abroad. This is not a warning about what might happen. It is happening now," the Ineos spokesperson said.
Make UK chief executive Stephen Phipson said energy bills are the sector's biggest concern and that without addressing them reindustrialisation would be impossible.
"Our industrial electricity costs are the highest in the world. This is having a ruinous effect on investment and requires urgent action," he said.
Unite general secretary Sharon Graham called the measures "baby steps" and said members wanted immediate cash and a clear investment plan.
"The Government needs to face the scale of the problem, and right now it isn’t even close," she added.
Simon Francis of the End Fuel Poverty Coalition warned that the £100 energy payment would "barely dent" rising costs and might not be used for heating.
"The Chancellor talked the talk on energy bills, but ultimately failed to walk the walk," he said.
Critics also urged the removal of the North Sea windfall tax, arguing that supporting domestic energy resources is essential to prevent further loss of factories, investment and skilled jobs.