THE Mineral Products Association (MPA) has said it is ‘deeply disappointed’ by the lack of commitment to a UK Carbon Border Adjustment Mechanism (CBAM) in chancellor Jeremy Hunt’s Autumn Statement.
The organisation said this ‘missed opportunity’ should be followed by publication of the promised consultation response announcing introduction of a CBAM.
The MPA added that failure to take this opportunity to demonstrate support for energy intensive industries – including cement – adds ‘further uncertainty to the creation of a level playing field on carbon cost with overseas competitors, putting at risk domestic production and long-term investment in decarbonisation’.
MPA has been calling for a CBAM covering cement as a method of equalising carbon costs between domestic producers and imports.
Dr Diana Casey, MPA’s executive director for energy and climate change, said, “The delay in committing to a CBAM sends the signal that the UK is not the place to invest. Cement is essential to our everyday lives. The construction of our homes, hospitals, offices and much more depend on it. We cannot take its supply for granted and neither can we put ourselves at risk of unstable international trading markets.
“Levelling the carbon cost between domestic production and imports is vital to attract the investment required to decarbonise and ensure our long-term security of supply. The UK Government must urgently commit to a CBAM on cement.”
The Construction Products Association (CPA) said the cut in the National Insurance rate from 12% to 10% and ‘Full Expensing’ for business investment were the two key headlines from the chancellor’s speech.
Noble Francis, CPA economics director, said, “For UK construction product manufacturers, it is the ‘Full Expensing’ announcement that will resonate most with them. CPA was a key part of the letter calling for this measure to be made permanent and is pleased to see this confirmed today. This will allow companies to invest in the UK to reduce their tax by up to 25p for every £1 they spend on plant and machinery.”
The Federation of Master Builders (FMB) said measures announced to speed up planning, cut taxes for small businesses, increase support for business investment, and provide financial backing to boost apprenticeships, are ‘welcome steps to help stimulate much needed growth in the economy’.
Brian Berry, chief executive of the FMB, said, “The Autumn Statement will be welcomed by small builders, with the government finally taking steps to support micro and SME businesses in a sector which has faced significant difficulty in recent years. However, this must only be the start if the government is serious about tackling the challenges we continue to face. Measures to reform the way local authorities process planning applications is good news, as are plans to help fund local authorities tackle nutrient neutrality mitigation. However, substantial increases in funding for local authority planning departments are needed if we are to see real progress.
“Financial support for SMEs represents another positive step, along with other announcements to boost SME growth, such as adopting digital technology. It is good to see that skills training has received a boost, with additional funding announced to increase the number of apprenticeships undertaken.”
