Manufacturers warn that rising energy bills may harm recovery

 
Suzie Neuwirth
THE UK Government must keep electricity prices low and cut regulatory red tape from green policies to keep the economic recovery on track, according to manufacturers’ organisation EEF.

In a new industry analysis released today, EEF warned that a growing number of medium-sized businesses are facing rising costs that are out of line with their competitors, which should be combatted by tight control of support for low-carbon investment and by addressing costs imposed by the carbon price floor, a tax on fossil fuels.

The report added that the government’s progress in deregulating areas of climate and environment policy had been too slow and undermined by unnecessary additional measures.

“The industry is feeling more confident and is in better shape to deliver the investment and exports we need for a stronger economy and the government has taken steps to help it deliver this,” said Terry Scuoler, chief executive of EEF.

“There are, however, still a number of risks of the economy being knocked off course. What we need now is absolute clarity on where we are seeking to get to and all of the government pulling in the same direction to get us there.”