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Government plan ''could deter UK manufacturers''

17 June 2011
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Government plan ''could deter UK manufacturers''The government has been warned that plans to introduce carbon dioxide pricing in an effort to force businesses to be more energy efficient could inadvertently damage the British manufacturing sector.

Speaking to Bloomberg, Richard Longden - a spokesman for chemical firm Ineos - revealed that senior figures at the company had written to chancellor George Osborne to advise him of "grave consequences" if the levies come into effect.

"If implemented, carbon price support is unlikely to have the desired environmental impact it is set out to achieve," he told the news agency. "Manufacturing is more likely to move outside of the UK."

Mr Longden added that businesses with energy-intensive production methods would be most likely to seek a move abroad and claimed the British sector could be left at a competitive disadvantage.

His remarks came after figures from Eurostat revealed a 0.2 per cent increase in eurozone manufacturing output in April.ADNFCR-3058-ID-800583747-ADNFCR
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