The Budget - Good news and bad news for the Plastics Industry

Commenting on Chancellor Gordon Brown’s Budget Statement today, BPF Director General Peter Davis said:

“There is both good news and bad news for the Plastics Industry.  The headline Corporation Tax rate has been cut from 30% to 28% from April 2008.  This is welcome – the eight Associations in their 6th March letter to the Chancellor criticised high UK Corporation taxation compared to the EU coverage”.

Fuel Duty Up

“The bad news is a steep increase of 2p a litre in fuel duty from 1st October and next year as well.  This will add greatly to our member companies transport costs.  We have the highest fuel duty in Europe, which damages business competitiveness”

Environment Measures

Peter Davis said “the bad news is that we could not persuade the chancellor to halt his increased in the unfair and unpopular Climate Change Levy, on top of the highest energy prices in Europe”.

“The good news potentially is a cut in VAT to 5% on energy savings products.  We need to know which, but hope they may include: EPS Insulation, PVC-U double glazed windows, plastic composite windmills etc”.

“The Chancellor announced Zero Carbon homes will be exempt from Stamp Duty but it is ill defined as to what a zero carbon home is”.

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For further information on this press release, please contact Thom Lant, British Plastics Federation, 6 Bath Place, Rivington Street, London, EC2A 3JE, tel 020 7457 5032, fax 020 7457 5001, email: [email protected]

Notes for editor

1) 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.