Seven Associations slates OFGEM as 'toothless tiger'

The BPF-headed Seven Association Alliance has attacked the efficacy of OFGEM in its submission to the Chancellor of the Exchequer prior to his Autumn statement.The industry attacked the profiteering of the energy companies who had reported a 19% rise in profits at a time when electricity and gas costs will rise by 9% on average this Winter.The Alliance believes we are faring no better on energy supply. BPF's Director General, Peter Davis, speaking on its behalf said 'There is no apparent progress on new power capacity, a gap is looming and this will bring the reality of power cuts and consequent job losses and reduced business confidence much closer'.
 
Demands for tax cuts were also to the fore. The industry asked for further reductions in tax cuts and expressed dismay that well known companies such as Starbucks and Amazon had escaped paying tax in the UK. It urged HMRC to be more assiduous in pursuing large organisations avoiding their fiscal responsibilities.
 
The Chancellor was urged to cancel the January increase in Fuel Duty of 3p per litre. Furthermore he was asked to freeze Business Rates for 2013 following above inflation increases earlier this year. 
 
The letter emphasised the need to develop the manufacturing base in the UK. Here the industry is looking for 100% capital allowances for two years to encourage investment.Pointing to the huge trade deficit the Alliance is looking for both a restoration of and increase in UKTI grant aid available to trade associations and their members to help boost exports and general overseas business development.
 
The Alliance supported the recently announced and favourable tax regime for the development of shale gas. 'Peter Davis said 'We need that here  to improve our manufacturing competitiveness'.
 
Finally there was applause for the increased government focus on and support for apprenticeships but the industry highlighted a bizarre anomaly which meant that in funding for 'Intermediate Apprenticeships - Level 2' that a 'Nail Technician' attracts substantially more funding than a Polymer Processing apprentice.

ENDS

For further information contact:

Philip Law, BPF Public & Industrial Affairs Director, on 0207 457 5000 or [email protected]  

Notes for editors:

British Plastics Federation (BPF) is the UK trade association for the plastics industry – representing the whole supply chain including polymer producers, distributors, additives suppliers, machinery manufacturers, processors and recyclers.