The Aluminium Federation (ALFED) has said that confidence is improving in the aluminium industry following its successful campaign for red tape to be cut.
It said that over the past decade, a range of measures to cut CO2 emissions has made Britain globally uncompetitive leading to the loss of 87 per cent of the country’s primary aluminium production capacity.
But ALFED believes its efforts to reduce this red tape following meetings with parliamentarians and Government Ministers has had an impact on policymakers’ approach to the sector.
In particular, it welcomes moves to compensate energy intensive industries for costs of energy taxes, a cap on the Carbon Price Floor at £18 per tonne, funding for apprentices and funding for a UK Manufacturing Industrial Strategy.
ALFED chief executive Will Savage said: “It is now clear that the current UK Government regards manufacturing as a sector which can deliver wealth to the UK economy. This was reflected in the Budget earlier this spring and also through the on-going discussions we’re having at ministerial level.
“But there is more to be done and we need to remain on guard. We’re going to be stepping up engagement with politicians and civil servants in order to build on the current momentum and ensure that Government policy continues to be supportive of British manufacturing.
“It’s important to stress for some in our sector, the payback period on investment can be up to 15 to 20 years, so it’s vital that there is confidence in the British economy over the long-term.”