The Budget


As you are probably well aware, the budget has been announced this week and Andrew Eastwell who is the chief executive at BSRI has been sharing his views. He believes that for the industry it provides mixed options.

He has said, “In a budget that is so close to an election there was never going to be pain inflicted that would upset the electorate and so measures required to compare anyone to spend money on energy saving was not going to feature in the Chancellors speech.

On the contrary, with Labour repeating their pledge to freeze energy prices the likelihood was that taxes on energy would be reduced – and wit it the inevitable consequence that payback times on energy saving measures would become longer.

This is indeed what happened where the Chancellor quoted a figure for reduction of nation energy costs of £7bn through a £1bn ‘special protection’ aimed mainly at manufacturers with high energy intensity operations, steel mills, paper producers and chemical manufacturers. This package is intended to ‘protect… from the rising costs of the Renewable Obligation and Feed-in-Tariffs”.

There is going to be a freeze of the carbon price floor which means that on average households will save around £15 each year. A concession has also been given CHP which is aimed at manufacturers that are using the technology and it will provide an exemption for electricity generated.

George Osborne has said that there won’t be any change to the investment into renewable energy and has stated that energy costs on an industrial level are now double the price in the UK compared to America.

There was also mention of increasing house building although this is the same statement that was made in the last budget. This means that new heating and cooling systems can be installed to again reduce carbon emissions.

The budget will have of course mentioned other aspects, including the tax free allowance increase, although our main focus at G T Refrigeration is the energy efficiency elements. If you would like to know some more on making your air conditioning units as efficient as possible read our blogs. Alternatively give us a ring and we will be happy to help you.

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