Key industries will buckle if govt doesn't provide support, expert warns

9 October 2021, 14:09

Key industries could fold if govt doesn't address supply chain crises

By Seán Hickey

The chair of the Chemical Industries Association warns that key industries will shut unless government provide financial support amid the supply chain crisis.

"This has been a strong year for the chemical industry" Stephen Elliot insisted, after suggesting to Matt Frei that British industries are hanging on by a thread amid the ongoing energy crisis.

He said that the impact current shortages will have on energy-intensive industries depends on "how long this particular period lasts".

Mr Elliot was part of a cohort of industry leaders that met this week with Business Secretary Kwasi Kwarteng to express industry concerns over the ongoing crisis.

"Did he give you the impression that he realises – that the government realises – if there's no fix to this, businesses will go to the wall?" Matt wondered.

Read more: Supply chain crisis: No 10 brings in former Tesco boss to save Christmas

"He certainly realises and agreed that if something isn't done then businesses will pause or close production for a period of time."

Parliamentary energy adviser Dom Goggins gives his take on the energy crisis

Read more: Empty shelves as supply crisis ‘leaves one in six unable to buy essentials’

The industry leader noted that "[Kwarteng] wants to act, I guess the key question is how do we help him influence across government."

He added that "there is an increasing understanding in the Cabinet Office and Number Ten" of the gravity of the situation, but help must come soon.

Read more: One in six Brits unable to buy essential food items amid supply chain crisis

Matt concluded that by asking if it was Mr Elliot's view that "if there is no sufficient support coming soon enough, factories will close."

"The answer to your question is yes", Mr Elliot warned.