UK chemicals makers urge policy reset to restore global competitiveness
30 Oct 2024
CIA: UK chemicals production has slumped 22% since 2020 amid strong competition from Asia and US
London – The Chemical Industries Association (CIA) has issued a series of policy actions to support the chemical sector in delivering of “net zero innovations, establishing resilient supply-chains, and reducing regional economic disparities.”
Since the Covid-19 pandemic, said the CIA, UK chemicals production has shrunk by 22.3% due to strong competition from Asia and the US, weak European demand, internationally uncompetitive energy prices and a lack of clarity over future regulations.
To attract investment to deliver the building blocks for other industries and innovations at the core of the green economy transition, the London-based industry body has identified four areas where government actions are necessary.
These areas are: the delivering of an industrial strategy; clear and long-term regulations supporting the transition to ‘net zero’; collaboration with industry to deliver on labour market needs; and a policy framework that incentivises investment in R&D
According to the CIA, over the past 10 years the manufacturing share of GDP has decreased by 11% and it is currently over 4 percentage points lower than the G7 average.
For UK manufacturing “to regain the importance they once had, we need stability - stability on energy prices, stability on industrial policy, stability of regulation and stability on the political front,” it stated.
Full CIA submission to the UK government