Smarter News Now
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting
No Result
View All Result
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
No Result
View All Result
Smarter News Now
No Result
View All Result
Home Politics News

High energy bills will hit motor trade, says SMMT

by
June 29, 2022
in Politics News
0
High energy bills will hit motor trade, says SMMT
0
SHARES
8
VIEWS
Share on FacebookShare on Twitter

The UK car industry has hit back at government calls for business to invest more, saying that uncertainty over the rising cost of energy and a lack of progress on Brexit trade talks risked deterring spending.

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said the sector was being “hit hard” and that help with power bills was the “industry’s number one ask”.

Speaking to the trade body’s annual conference in London, Hawes said: “The chancellor has recently been critical of business for a lack of investment. But investment needs stability. It needs trust, not uncertainty.”

Business BriefingIn-depth analysis and comment on the latest financial and economic news.One-click sign up.
Its analysis estimates the sector’s annual energy bill will rise by £90 million in 2022, and the cost of producing vehicles and components in the UK is putting manufacturers at a competitive disadvantage, Hawes warned.

“UK electricity prices are the most expensive of any European automotive manufacturing country and 59 per cent higher than the EU average, meaning that last year UK manufacturers could have saved almost £50 million on energy costs if they were buying in the EU rather than the UK,” he said.

Hawes called for the sector to get Energy Intensive Industry status and qualify for government reliefs, and for the scale and scope of the Automotive Transformation Fund, which helps the supply chain invest in green technology, to be expanded.

Brexit uncertainties still hung over the industry, he added. “Brexit was a trauma. But it is not yet done and the effects of it are still being felt. There was an immense sense of relief when the deal was finally made.”

Yet since the signing of the Trade and Cooperation Agreement with the EU at the end of 2020 there had been little progress, he said. “The promised working groups with the EU have not met. Critical UK-specific regulation has not been hammered out … The progress promised has not materialised.

“For years business, especially automotive, operated with the uncertainty of a referendum, stalling trade negotiations, the threat of no deal. There are now uncertainties around protocols. Investors will take note. They will pause, but investments are made in a small window. They will not and cannot wait for ever.”

In a pre-recorded video message Rishi Sunak, the chancellor, told the audience of industry leaders that the sector is “incredibly important to the UK economy” and “that’s why the government is doing more to support you”. He said this included a commitment for £2.5 billion of investment since 2020 to support the transition to zero emission vehicles. The Treasury declined to comment further.

The trade body also warned that the shift to making electric vehicles put more than 22,000 UK jobs at risk. About 15 per cent of jobs in vehicle making involve making engines, exhaust systems and fuel tanks, the SMMT said.

The UK is due to phase out petrol and diesel models by 2035. New jobs will emerge and many skills will be transferable but the society said: “For many long-established component segments such as engine and exhaust producers and their sub-suppliers, the transition to electrification presents major challenges.”


ShareTweetPin

Related Posts

Usain Bolt moves to trademark signature victory pose
Politics News

Usain Bolt moves to trademark signature victory pose

August 23, 2022
London to get new airport as Manston is cleared for take-off
Politics News

London to get new airport as Manston is cleared for take-off

August 23, 2022
Over 1,000 regional businesses are fending off cyber-attacks with police-led cyber resilience
Politics News

Over 1,000 regional businesses are fending off cyber-attacks with police-led cyber resilience

August 23, 2022
British Airways to cancel further flights up to the end of October
Politics News

British Airways to cancel further flights up to the end of October

August 23, 2022
Microsoft in trademark row with UK children’s reading firm Word Windows
Politics News

Microsoft in trademark row with UK children’s reading firm Word Windows

August 23, 2022
Crypto fraud revenues drop 65% following market meltdown
Politics News

Crypto fraud revenues drop 65% following market meltdown

August 23, 2022
Next Post
Nottingham named worst UK city for broadband outages

Nottingham named worst UK city for broadband outages

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Email Address *
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!
 

Recommended

National leadership and our collective future

National leadership and our collective future

August 7, 2022
Company Voluntary Agreements plunge as taxman tightens debt recovery rules

Company Voluntary Agreements plunge as taxman tightens debt recovery rules

August 22, 2022
Century Pacific ventures into fish-free tuna

Century Pacific ventures into fish-free tuna

July 7, 2022
Pfizer COVID-19 vaccines safe and effective for small kids, FDA staff say

Pfizer COVID-19 vaccines safe and effective for small kids, FDA staff say

June 13, 2022
Celebrity-favorite beauty brand opens Greenbelt store

Celebrity-favorite beauty brand opens Greenbelt store

August 7, 2022
BIR to pursue rightsizing

BIR to pursue rightsizing

August 19, 2022
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting

Copyright © 2022 SmarterNewsNow.
All Rights Reserved.

Disclaimer: SmarterNewsNow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

No Result
View All Result
  • About Us
  • Contact Us
  • Email Whitelisting
  • Home
  • Privacy Policy
  • Terms & Conditions
  • Thank You

Copyright © 2020 SmarterNewsNow. All Rights Reserved.