PVC has been unveiled in the UK by a recently released industrial strategy that will see measures taken to reduce energy costs for manufacturers, Kallanish learns from a note.
Kara Haffey, a manufacturing leader at PwC, says the announced changes "change the rules of the game for manufacturers across the country," noting the extremely high energy costs of domestic face manufacturers.
The changes include the expansion of the charger compensation network to 90% and the continuation of indirect compensation, as well as certain benefits for energy-intensive enterprises such as steel.
In the same note, Vicki Parker, Energy, Utilities and Resources, a leader at PwC, highlights the announcement as timely, given that "energy will continue to be heavily influenced by geopolitical events and an increasingly complex global economic landscape."
"By addressing two of the most pressing issues – high electricity prices and long–term grid connectivity - this initiative demonstrates a strong commitment to creating an environment where businesses can have the foothold to grow and compete internationally," she notes.
Politicians "will undoubtedly be watching the current geopolitical developments, especially regarding oil prices, the price of Brent rose to a five-month high last weekend, has now stabilized," adds Parker.
"If prices were to spike significantly, this could raise the question of accessibility policy and re-open the discussion on how to ensure the management company manages its impact of the current dynamics of energy prices," she continues.
Meanwhile, Matt Alabaster, a partner at PwC, points to "chronic underfunding" as the reason for the country's "stagnant productivity and sluggish wage growth," highlighting a 2 trillion shortfall in investment compared to other G7 countries.
"A long-term industrial strategy, based on business and consistently delivered by the government, is an important first step. But let's be clear: the money won't be coming from behind the back of a British sofa. Government capital expenditures, although welcome, are only at first glance – their annual increase covers only 67 days of the amount of investment that the UK has lost," he concludes.
Carrie Bone United Kingdom
Kallanish.com
