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It will take more than £600m a year to boost UK industrial competitiveness | Nils Pratley

about 20 hours ago
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It is “bold action” to boost UK competitiveness, claimed the government.Not everybody shared that assessment of the British industrial competitiveness scheme (Bics), the long-awaited plan to cut electricity bills for UK manufacturers by up to 25% – or, at least, to cut them for a subset of firms that are aligned with the eight chosen sectors of the “modern” industrial strategy.“Gas intensive industries in the UK have been shamefully ignored by the government in this announcement – it’s a total disgrace,” said Gary Smith, the general secretary of the GMB union, banging the drum for the likes of ceramics-makers and brickmakers that aren’t deemed modern enough for support.Employer bodies mostly did the polite thing of welcoming government assistance of any form before using phrases such as “drop in the ocean”.And, it’s true, £600m a year across 10,000 companies isn’t much.

In the government’s defence, one could say Bics has been expanded from the 7,000 firms advertised at the initial announcement last summer.In addition, a back-dated feature has been introduced: the scheme will still start in April next year, but qualifying firms will then be able to claim what they would have got.Complicated? You bet.And the complications are only magnified in the operational detail.You don’t just have to be in a “frontier” or a “foundational” industry that serves the frontier-pushers; a further qualifying criterion will be applied to electrical intensity across product lines.

So this scheme isn’t just targeting sectors in the industrial strategy – it is targeting products within those sectors.If you jump through all the hoops, then you get relief from three policy costs on bills, including two green levies, worth up to £40 per megawatt hour.There are two big-picture points here.First, the scheme came with the clearest acknowledgement to date by the government that the UK’s sky-high cost of energy for business – the highest in the developed world – is damaging competitiveness and growth.For the targeted areas, there is now an ambition to get electricity prices in line with European averages.

Second, the government can see that the thicket of policy costs and levies on bills lies at the heart of the problem,Thus the carbon price support mechanism, a charge on generators that is passed on to bill payers, is being abolished, having served its purpose of driving coal off the grid (though why it takes until April 2028 to actually kill it is a mystery),But then one comes back to that modest nature of the £600m,This is really a debate about how to distribute the costs of energy transition and new grid infrastructure,Many other European countries including Germany take a greater chunk of policy costs into general taxation in the name of keeping industry alive and competitive.

In the UK, the habit has been to shove it all on to bills,Now the principle has been conceded that, in some areas of industrial activity, there needs to be some form of rebalancing,In an imaginary world without fiscal constraints, one can imagine a bigger scheme with less laser-like targeting,It would also run to several billions of pounds, which is presumably why Rachel Reeves won’t go there,Treasury officials, it is said, remain unconvinced that a wider scheme would pay for itself over time in terms of higher growth and tax receipts.

Thus Bics can only be viewed as an unsatisfactory fiddle.It acknowledges that nose-bleed electricity prices are a structural problem, but tries to pretend they’re only an issue for a narrow section of industry.There is a risk the government thinks it’s cracked the competitiveness challenge.Sadly, it’s more than a £600m-a-year fix.
societySee all
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Effect of ‘gamechanger’ Alzheimer’s drugs ‘trivial’, review concludes

Drugs that have been hailed as a gamechanger for the treatment of Alzheimer’s disease make no noticeable difference to patients, according to an extensive review.The analysis of clinical trials in people with mild cognitive impairment or mild dementia found that the effects of anti-amyloid drugs on cognition and dementia severity over 18 months were “trivial”, with improvements in functional ability “small at best”.The verdict is a blow to the new wave of drugs that are designed to slow Alzheimer’s by clearing clumps of amyloid protein that build up in the brain. Amyloid plaques are a hallmark of Alzheimer’s disease, along with another protein called tau which forms toxic tangles in neurons.The Cochrane review drew on gold standard methods to assess data from published clinical trials, but was criticised by some researchers and charities for combining results from older, failed drugs with those from newer, more effective medicines

1 day ago
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People in north of England twice as likely to be killed in accidents as Londoners, report finds

People in the north of England are twice as likely to be killed in accidents than Londoners, with accidental deaths clearly linked to deprivation, a report has found.The research, from safety charity the Royal Society for the Prevention of Accidents (RoSPA), highlights vast regional differences in accidental deaths, which have also seen an overall increase.The north-east is the most dangerous region for accidents in England, with a death rate of 44 per 100,000 people, compared to an average of 32 across the country, with the north-west in second place with a death rate of 38 per 100,000 people.Scotland was the most dangerous of the devolved UK nations, with an even higher accidental death rate of 51 per 100,000, while Wales equalled the north-east of England, and Northern Ireland’s rate of 39 per 100,000 was also above the England average.Meanwhile, London was the safest place to live in the UK, with an average of 19

1 day ago
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Sexual harassment is rife on comedy circuit and women lack protections, MPs told

Sexual harassment and abuse on the comedy circuit is persistent and under-reported, with protections available to women often limited or absent, a comedian has told MPs.Performers and campaigners said many female comedians are left to rely on informal warning systems to try to keep themselves safe but added that these systems can expose women to further risks.“Female comedians rely on so-called ‘whisper networks’, a shadow safeguarding system where warnings and experiences are shared on private WhatsApp threads,” Nina Gilligan, a comedian and the co-founder of the industry body Get Off Live Comedy, which provides HR support to those working in the industry, told the cross-party women and equalities committee on Wednesday.Chaired by the Labour MP Sarah Owen, the committee explored the experiences of women in live comedy, the representation of women across the sector and the barriers they face in building a career.The committee has been examining how employment protections apply in freelance and gig-economy sectors, where traditional safeguards are harder to enforce

2 days ago
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Strike is harming the NHS and dividing doctors | Letters

Polly Toynbee is right that it is time to stop the doctors’ strikes (Both doctors and the government are handling this strike badly – that’s why there is no end in sight, 10 April). She suggests that doctors are not feeling the pain of industrial action, but this is far from true. We are anxious about our patients and their cancelled appointments and procedures; we are exhausted covering work that we are not familiar with; and those being paid overtime for shifts they don’t want to do are uncomfortable about the financial impact on the NHS.Many of us reluctantly supported industrial action at the beginning, with a government that wasn’t listening – wanting to support junior colleagues whose pay had fallen far behind contemporaries. Now we see how divided and conflicted resident doctors are too, and we long for a resolution

2 days ago
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Why we washed our hands of Izal | Brief letters

In the 1970s, to save money, a London psychiatric hospital replaced soft toilet tissue with Izal medicated toilet roll (Letters, 13 April). Therapists conducting successful sessions for outpatients with compulsive disorders were surprised by a sudden increase in relapse rates, until they realised that each sheet contained the exhortation “Now wash your hands”. Its use was discontinued. ‌Prof David C SandersMortain, France Izal toilet paper made excellent tracing paper, but it also made a superb sound in a comb and paper. One member of a jokey interval band at the original Concorde Jazz Club in Southampton played an Izal bumphone to great effect!David WittMalmesbury, Wiltshire It’s not all doom and gloom when products are discontinued

2 days ago
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Government’s 1.5m housebuilding target in England is suffering from subsidence | Nils Pratley

This is what the government didn’t want to hear when its target to build 1.5m homes in England during this parliament already looked out of reach. The country’s biggest housebuilder is trimming its purchases of new land because the Iran war has created “a less certain backdrop”.Barratt Redrow’s “disciplined approach” isn’t a downing of tools, it should be said. The company had previously expected to buy between 10,000 and 12,000 plots; now it will acquire between 7,000 and 9,000

2 days ago
businessSee all
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It will take more than £600m a year to boost UK industrial competitiveness | Nils Pratley

about 20 hours ago
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IMF chief Georgieva warns ‘everyone will feel the impact’ of energy price shock, as UK growth beats forecasts – as it happened

about 20 hours ago
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Europe has only six weeks’ supply of jet fuel left owing to Iran war, says energy chief

about 21 hours ago
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Metro Bank boss handed record £2.6m a year after slashing 1,000 jobs

about 21 hours ago
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Tesco warns profits could fall amid Iran war uncertainty

1 day ago
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UK could face gaps on supermarket shelves by summer if Iran war continues

1 day ago