In this article, BCGA Chief Executive Graeme Craig has studied through the Budget, and shares his observations on its impact for the UK compressed gases sector.
This was a budget that could, and should, have done more for our sector, However, let’s start with the positives:
- Slower increase in the minimum wage.
- More money directed to the British Business Bank and National Wealth Fund.
- £194m investment in national cyber defences.
- Launch of a Corporation Tax simplification programme.
- A new ‘Better Regulation Executive’ to improve regulatory reform that (in theory) will create a better environment for investment and growth.
While some of these headlines can be classified as ‘wait and see’ it’s encouraging to see the Chancellor back away from previous budget strategies that appeared to lean on business and industry to drive up revenue for the government coffers.
However, the PM’s much talked about commitment to reindustrialise Britian was not reflected in the budget with the same gusto. There was no attempt to address industrial electricity costs – the highest in the world.
While the British Industrial Competitiveness Scheme (BICS), could deliver up to 25% discounts on electricity for the UK’s most energy-intensive firms, the scheme needs to be expanded.
Cuts to capital grants for hydrogen projects amount to £500m, and a £200m commitment from former chancellor Rachel Reeves for the Acorn CCUS cluster in northeast Scotland will now be scrapped. And Healey also forewarned that a planned levy on gas grid operators intended to fund hydrogen production will be scrapped.
Despite some clear benefits delivered by the Chancellor, we optimistically wanted (and need) more. Perhaps we will have greater context, and more cause for optimism, when we see Andy Burnham’s 10 year plan later in the year. Over to you PM.
