Osborne ‘is listening to industry’

The Confederation of Paper Industries( CPI) welcomed the Chancellor’s recognition of the impact of high energy prices on industry, and the paper sector in particular, and his acceptance that competitive energy prices are key to retaining UK jobs.

He announced “a £7bn package to cut energy bills for British manufacturers – with benefits for families and other businesses too”.

In yesterday’s Budget, George Osborne announced a new compensation scheme to help offset the costs of renewable electricity in 2016-17, a freeze in Carbon Price Support (CPS) levels from 2016-17 and the extension of the EU Emissions Trading System electricity price and CPF compensation schemes for Energy Intensive Industries to 2019-20.

Osborne also said electricity produced by Combined Heat and Power (CHP) plants and used for industrial consumption will be removed from CPS.

“ CPIhas been calling for these policy changes, in particular the removal of CPS taxes from industrial electricity generated by good quality CHP plants,” said director general David Workman.

“I am delighted the Chancellor has listened to our arguments and acted.

“Paper mill CHP plants are energy efficient and contribute to reducing the country’s greenhouse gas emissions and the policy change recognises this fact.”

He added: “Taken as a whole, the Chancellor’s package to help reduce energy costs for manufacturing industry is excellent news, and will help to keep skilled jobs in the UK and encourage investment in UK manufacturing.

“The Chancellor has shown in this statement that he has been listening and I would thank him for specifically mentioning the Paper Industry in his speech. He promised a budget in support of manufacturing and he has delivered.”