Spring Statement prompts IChemE call for stable industrial policy

THE Rachel Reeves Spring Statement has prompted calls from IChemE for stable industrial policy to support investment in the chemical sector.

Delivering the statement on 3 March, the UK chancellor emphasised the importance of economic stability in encouraging investment and growth.

In her address to MPs, Reeves said the government’s economic approach was designed to provide stability in an uncertain global environment. “This government has the right economic plan for our country,” she said, adding that maintaining “stability in our public finances, investment in our infrastructure and reform to Britain’s economy” would be key to supporting long-term growth.

Responding to the announcement, IChemE CEO Yvonne Baker said stable and consistent policy environments are critical for industries such as chemicals, where companies make long-term investment decisions.

“The chancellor used her statement to discuss the importance of stability in encouraging investment and economic growth,” Baker said. “As we often see in the chemical industry, stable and consistent policy environments are essential to giving businesses the confidence they need to plan their activities and secure investment.”

Baker also highlighted the role of chemical engineers in strengthening energy security, following references in the statement to rising geopolitical tensions and their impact on energy markets.

“The announcement referenced the conflict in Iran which escalated only days before and is already impacting global oil and gas prices, highlighting the need for greater energy security,” she said. “Chemical engineers play important roles in increasing energy security not only in oil and gas, but across the energy sector.”

The statement also included discussion of apprenticeship and student loan policy, areas IChemE says are linked to ongoing skills challenges in the sector.

Initial insights from IChemE’s latest employment survey suggest that 44% of employers report sector-specific technical skills shortages, indicating what the Institution describes as a potential mismatch between graduate expectations and employer needs.

Baker said IChemE hopes policy changes in these areas could help address the issue and reduce unemployment levels highlighted in the statement.