Energy security strategy must balance reality today with future needs
The UK’s future energy security strategy needs to tread a fine line between the practical needs of industry now and its medium to long-term targets, the Head of Manufacturing at national audit, tax, advisory and risk firm Crowe is warning.
Johnathan Dudley said there was the inherent risk of securing the UK’s domestic energy policy and committing to a greener future, while businesses simply imported products from countries that paid only lip service to the environmental agenda.
“It’s no good being ‘clean’ but importing products from countries that aren’t. It’s just creating poverty here while moving the problem elsewhere.
“Not all countries are committed to net zero, let alone by 2030/2050, and this is what is behind the rumoured threat by Toyota to move manufacturing away from the UK. Others may follow.” he said.
He cautioned that an over-aggressive, early implemented energy security strategy has grave short-term risks for business.
“In the short-term there will undoubtedly be an impact on cashflow, on the return on capital employed, and an impact on profits which, ultimately, may risk the survival of some businesses.
“We need a balanced and affordable strategy that supports UK industry in the short-term and incentivises investment for the future. This will need grant funding, as loans are already gearing balance sheets too much.
“Organisations with money will only invest in countries with the best incentives and a more realistic, balanced approach to net zero.
“Industry has a key role to play here as an influencer, to help the UK government steer a viable path between ultimate energy security for the country, and the current practicalities facing manufacturing businesses.”
- Miriam Sherwood, Director, People Communications & Marketing, Crowe UK. Tel: (0)121 543 1900, email@example.com
Notes to Editors:
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- UK Member of one of the top 10 accounting networks in the world (International Accounting Bulletin World Survey 2021)
- Top charity auditor (Charity Financials Auditor Benchmarking and Charity Finance Audit Survey, 2009 – 2020)
- Ranked 5th in the AIM auditors ranking by number of audits (AIM Advisers Rankings Guide, January 2022)
- 9th largest audit firm in the UK (UK fee income of audit firms that audit PIEs – by fee income on audit, FRC Key Facts and Trends in the Accountancy Profession, Figure 33, July 2021)
- Risk Consultancy of the Year 2021 for the second consecutive year (InsuranceERM) – Crowe was recognised to be at forefront of two key areas of focus for insurers in 2020: operational resilience; and environmental, social and governance (ESG) issues, including climate change.
- Awarded Bronze for Accountancy Firm of the Year – Large (2020 Citywealth Magic Circle Awards)
- Global Mobility Provider of the Year (Global Payroll Awards 2020)
- Employment Tax Specialist of the Year (Global Payroll Awards 2019)