22.5% decline in investment between April and June 2019 – the biggest fall since 2009
BEAMA has written to the Secretary of State for Business Energy and Industrial Strategy, Andrea Ledsom, calling for urgent action by the Government to support UK manufacturing.
BEAMA CEO, Dr Howard Porter states
‘This dramatic decline is very worrying, and we are asking the Secretary of State for an urgent meeting to review the current situation. BEAMA has been tracking the impact of BREXIT on the market since the referendum result in 2016 through our Brexit Watch initiative. We know BREXIT has been impacting on UK manufacturing since then, but these figures now show a sharp decline in investment in recent months’.
‘Following recent consultation with our members to input into the BEIS select commitment inquiry into UK investment in the energy sector we found many companies reporting stalled levels of investment, specifically in relation to certain low carbon technology markets, including storage, as well as T&D network investment. For energy and renewables specifically, we believe this is due to a combination of BREXIT and indecisive and hesitant action by the government on the future market for renewable energy and associated low carbon technologies. Network operators are under increasing spending pressure which is reducing spend on even traditional asset replacement, putting more pressure on the UK supply chain to keep investment in the UK going.
Government ambition to develop a market for low carbon products and services is not matching the reality of what’s happening in the market’.
BEAMA and EURIS sectors have for a long time been stating the devastating impact BREXIT is having on the market. A no-deal outcome would be the worst outcome and place the UK in a detrimental position with regards to international trade. The biggest concern highlighted today is regulatory divergence. BEAMA calls for the need to maintain close regulatory alignment for products traded between the UK and EU, and in some cases (e.g. Chemicals regulation) maintain access to some EU regulatory and compliance processes. Without this, the cost burden to UK manufacturing could be too much.
In BEAMA’s recent Net-Zero by Design report the industry calls for urgent action to set clear market signals, and regulatory mechanisms, to help drive investment into the UK market for low carbon technologies. Setting a long-term target, even one in legislation, is not enough to give manufacturing firms confidence to invest in the UK market and develop the supply chain needed to meet Net-Zero.
For more information and to download a copy of the BEAMA BREXIT click here