UK chemical industry shrinks for 6th consecutive quarter

The UK chemical industry has contracted for a sixth consecutive quarter, according to a survey of more than 50 companies by the UK trade body the Chemical Industries Association (CIA). “Falling sales, production levels, and capacity utilization featured heavily,” the CIA says in a report on the survey. The firms indicated that there will be no sustained recovery before year-end. Government policy is holding the sector back, according to the CIA’s CEO, Steve Elliott. “Our businesses can do so much for this country in terms of tackling climate change, providing well-paid jobs in regions where they are needed most, and boosting UK exports,” he says. “However, we must improve the policy framework.” The CIA has published a manifesto outlining how certain UK policies could be changed to improve the sector’s outlook, including introducing incentives to support innovation, delivering a competitive energy pricing system, committing to net-zero projects, and forming a UK carbon emission trading scheme.