New energy price threat

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Manufacturers are urging the Government to abandon plans to double the carbon tax on UK companies.

EEF, the manufacturers’ organisation, says industrial electricity prices could rise by as much as 7 per cent, costing the UK economy an extra £300 million and widening the competitiveness gap with the rest of Europe.

EEF regional director Andy Tuscher said: “The UK risks blindly walking into a situation whereby we lock ourselves into higher energy taxes, regardless of the market price of carbon.

“Yet another unilateral increase on this scale, coming at a time when the economy is still in recovery, would only serve to widen further the gap between electricity prices in the UK and those of our competitors in Europe. It would contradict the Government’s stance that the UK will go no faster than our partners in Europe and push up industry’s costs. ”