Labour candidate for Redcar, Anna Turley, has today (19th March 2014) claimed that a carbon price floor freeze, announced in the Budget, will provide no immediate relief for Redcar’s “fragile” steel and chemical industry.
In the Budget it was announced that the carbon price support (CPS) rate per tonne of carbon dioxide (tCO2) will be capped at a maximum of £18 from 2016-17 until 2019-20 - effectively freezing the CPS rates.
“This u-turn is an admission that the Coalition Government got it wrong in their 2011 Budget when they first announced the carbon price floor. Unfortunately, for many steel workers, it has come too late as thousands of jobs across the steel industry have been lost.
“These heavy industries in Redcar and Teesside provide employment for a lot of people in the area, but they are in a very fragile state. They have already been hit hard by the Coalition’s original 2011 policy and their bills, particularly for energy, continue to rise. What they really need is help now, but what was announced today is two years down the line – a lot can change in that time. We need long-term measures that can sustain heavy industry and provide employment for generations to come for the hardworking people on Teesside.”