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TUC calls today for the Government to go further and
faster to protect the car industry from sky-high energy
costs
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UK car makers create good jobs and growth, but high
energy bills in the UK mean they struggle in the face of
competition from abroad
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Ahead of the budget, the TUC is calling for the
Government to act immediately to bring down energy costs, and
in the long run move away from the costly rollercoaster of
global gas markets
On a visit to the Jaguar Land Rover factory in Solihull, the
General Secretary of the Trades Union Congress (TUC) Paul Nowak
has today (Wednesday) called on the Government to put its “foot
on the accelerator” and speed up support for the UK car industry.
The automotive sector will be central to future jobs and growth,
but UK industry is currently suffering from sky-high energy
costs, hitting competitiveness.
While recent support announced in the Industrial Strategy is
welcome, the TUC is today calling on the Government to go further
and faster to bring down energy bills for manufacturers. Ahead of
the budget, the TUC is calling on the Government to:
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Speed up the rollout of bill discounts for the
UK's most important industries,
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Protect other bill payers by funding the
discount scheme through general taxation, and
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Lower energy prices in the long run by
separating bill prices from the rollercoaster global gas
market
The automotive sector supports 200,000 jobs in every part of the
UK, with 800 000 in the wider supply chain. Iconic brands like
Range Rover and Jaguar F-Pace, made at the Solihull factory, are
symbols of British quality and prestige around the world.
But sky-high energy costs are putting British car makers at a
disadvantage compared to other countries. Industrial electricity
costs are the highest in Europe, double the European average,
meaning jobs risk moving abroad.
The Government introduced welcome support to cut energy bills for
businesses as part of the Industrial Strategy, but the new
discounts are not due to be introduced until 2027, potentially
too late for many manufacturers. The TUC is calling on the
Government to bring forward the introduction of the British
Industrial Competitiveness Scheme or offer interim support for
businesses that are struggling, and make sure energy cost relief
schemes are properly funded, to avoid the risk of making everyone
else's energy more expensive.
High energy bills are being driven by our dependence on the
rollercoaster international gas market to set the price of
electricity. Unlike France and Germany, which depend much more on
nuclear, and other energy sources Vladimir Putin doesn't
control, the UK's electricity prices are almost always set
by the international cost of gas.
In the long run, the TUC is calling for the Government to explore
how best to restructure the electricity market to provide
cheaper, more predictable energy prices and reduce our dependence
on volatile overseas gas prices.
Speaking on a visit to the JLR Solihull factory, the TUC
General Secretary Paul Nowak said:
“Car making is one of the jewels in the crown of British
industry, and British classics like Range Rover and Jaguar are
iconic around the world.
“But sky-high energy costs mean we risk losing out to competition
from abroad.
“The Government has set out welcome support in the Industrial
Strategy, but must go further and faster to bring down energy
bills for British businesses.
“It's time for the Government to put its foot on the accelerator,
and act now to protect jobs and manufacturing in the UK.”
ENDS
Notes to editors:
