UK steelstockholders are among those in the manufacturing sector who may benefit fromgreater long-term confidence on cost concerns like energy bills and corporationtax.
Manufacturers’organisation EEF – which encompasses the sector-specific body UK Steel – hasexpressed disappointment at some of the statements made by Ed Miliband in hisrecent address to the Labour Party Conference.
Inparticular, Mr Miliband intimated that corporation tax could rise, reversingrecent cuts made and, according to EEF, sending a message internationally thatcontradicts the principle of Britain being “open for business”.
Of possiblygreater immediate concern to UK steel stockholders, given the unavoidableenergy intensity of the steel industry, Mr Miliband also made statements aboutpossible short-term methods of compensating for the high cost of energy.
While thismay sound positive initially, EEF chief executive Terry Scuoler was not soconvinced, saying: “Short-term announcements are not the answer.
“Thebest way to create low-carbon jobs is by giving businesses the confidence thatenergy prices will be stable and competitive over the long term.”
Until he isable to do so, it seems Mr Miliband will lack the backing of EEF and many ofits members – no doubt including a large number of UK steel stockholders amongthem.