Chris Philp
Main Page: Chris Philp (Conservative - Croydon South)
Sajid Javid
The hon. Gentleman is right to raise the issue of business rates, because that has come up time and again from the industry, so it is right to look at it. One of the issues is that a change in business rates could be a rather blunt instrument, especially in the steel industry, if we look at the total cost of making that change and at just how little of that would flow down to the industry. There might be better and more focused ways of doing that. Having said that, where there are large steel operations, such as Port Talbot in Wales, there might be something that could be done. As he will know, business rates are devolved, but we are talking about this issue with the Welsh Government.
Chris Philp (Croydon South) (Con)
I was pleased to hear the Secretary of State acknowledge a few minutes ago the part that high electricity prices—caused in part by the Climate Change Act 2008—have played in the unfortunate situation with steel and other energy-intensive industries. I am very concerned that the carbon price floor in the UK, at £18.08 per tonne, adds to the £5.30 per tonne in the EU, placing a burden on UK energy-intensive industries that is four and a half times that of our European neighbours. I know that he has done a lot to alleviate this burden with direct assistance, but does he agree that now might be a good time to look again at reducing the carbon price floor?
Sajid Javid
My hon. Friend is right that energy costs are a very important issue for the industry, especially when compared with these in other countries in Europe. He is right to point out the action that we have taken, with compensation now moving to exemption. There are other ways to help, and we are actively looking at them. One way is to look at more renewable power sources, which are exempt from many of the costs—a colleague mentioned the tidal lagoon earlier. There are certainly other ways that we can help, and we are looking at all those options.