As the British economy struggles to emerge from the economic crisis of 2008-09, it is widely assumed that the manufacturing sector will contribute positively to the general recovery. Therefore, the Government must ensure that manufacturing industries are supported by policies that help rather than hinder their competitiveness. In British Energy Policy And The Threat To Manufacturing Industry, Ruth Lea, Economic Advisor to the Arbuthnot Banking Group, and Jeremy Nicholson, Director of the Energy Intensive Users Group, examine the impact of government policy on energy prices.
The recent Labour Government aimed to reduce carbon emissions and to increase the proportion of energy generated from renewable sources; these policies, Lea and Nicholson argue, remorselessly drive up energy costs, thus risking the migration of manufacturing plants to economies where the costs are lower. Furthermore, Lea and Nicholson cite evidence that the increased costs of energy arising from such policies are set to increase significantly by 2020. Lea and Nicholson present a powerful case for ensuring that British energy policy does not threaten Britain s industrial competitiveness. They demonstrate why British authorities must not neglect the significant implications of their policy decisions for British businesses in a rush to appear 'green'.
About the Author Ruth Lea is currently Economic Adviser and Director of Arbuthnot Banking Group plc. Her previous jobs include the Director of the Centre for Policy Studies, Head of the Policy Unit at the Institute of Directors and Economics Editor at ITN. She also worked for six years in the City with Mitsubishi Bank and Lehmans and 16 years in the Civil Service including the Treasury and DTI. Jeremy Nicholson is Director of the Energy Intensive Users Group, which campaigns for secure, competitive energy supplies for UK industry. He trained originally as a civil engineer and he spent four years as an economic analyst working for a group of French-owned water companies in the UK before joining EIUG, initially as their Economic Adviser, in 2000. He is a Board member of the International Federation of Industrial Consumers, a member of Ofgem's Environmental Advisory Group, the government's Business Energy Forum, and a Fellow of the Energy Institute.
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Ruth Lea is currently Economic Adviser and Director of Arbuthnot Banking Group plc. Her previous jobs include the Director of the Centre for Policy Studies, Head of the Policy Unit at the Institute of Directors and Economics Editor at ITN. She also worked for six years in the City with Mitsubishi Bank and Lehmans and 16 years in the Civil Service including the Treasury and DTI. Jeremy Nicholson is Director of the Energy Intensive Users Group, which campaigns for secure, competitive energy supplies for UK industry. He trained originally as a civil engineer and he spent four years as an economic analyst working for a group of French-owned water companies in the UK before joining EIUG, initially as their Economic Adviser, in 2000. He is a Board member of the International Federation of Industrial Consumers, a member of Ofgem's Environmental Advisory Group, the government's Business Energy Forum, and a Fellow of the Energy Institute.
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