British Glass has again called on the government to support UK manufacturers in tackling rising energy costs.
Businesses have struggled to stay afloat amid rising energy prices; gas and energy prices for manufacturers have quadrupled and tripled in the past year. Carbon compliance costs have also increased from a low of £16 in 2020 to more than £80 in 2021. However, ministers have not acted.
Glass is a relatively inexpensive material, and rapid increases in energy prices will soon mean that the cost of production exceeds the value of the product. UK companies also spend more on energy than EU companies, putting them at a competitive disadvantage.This will continue to put pressure on the glass supply chain, which will ultimately affect consumers, leading to higher costs for glass products such as food and beverages, packaging, and glass.
This could mean UK-made glass products such as jams, pasta sauces, beer, and spirits will become prohibitively expensive. In the long run, the UK is likely to increase imports from EU countries such as Turkey, Oman, Egypt, and Russia, where energy and carbon costs will be significantly lower.
Dave Dalton, chief executive of British Glass, said: "Despite assurances from the Secretary of State, nothing has been done to support manufacturers through this crisis, which, combined with the difference in UK and EU carbon prices, puts UK manufacturers at a competitive disadvantage. If the government continues Without support, there is a good chance that the business will no longer be competitive.
Figure 1 The British local glass curtain wall building 1
"We're not asking for a bailout with taxpayer money. We're just asking for policies to support the continuation of the industry and level the playing field for UK manufacturers versus international rivals.
"Manufacturers cannot continue to pay these costs, or try to pass them on to customers, nor meet climate targets, sustain much-needed jobs in poorer parts of the UK, and remain a key contributor to the UK economy.
"Further delays will be detrimental to our industry and we call on the government to start a dialogue and take immediate practical action."
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