Reynolds agrees need for ‘urgent next steps’ with bioethanol firms over US deal
The Business Secretary has agreed on the need for “urgent next steps” to protect Britain’s bioethanol firms in a meeting with industry chiefs after the UK-US trade deal.
Representatives of ABF Sugar and Ensus said Jonathan Reynolds had committed to act within “days, not weeks” amid concerns hundreds of jobs could be at risk.
The Government is “open to discussion” of potential options to support the industry, the Department for Business and Trade said.
The agreement between London and Washington includes a UK concession to cut British tariffs on US ethanol, which is used to produce beer and as a fuel additive, from 19% to 0%.
The Business Secretary agreed to work alongside Cabinet colleagues to look into the issue further and explore putting a process in place to protect future UK production of bioethanol
ABF Sugar and Ensus, the two main firms producing UK bioethanol – a form of renewable energy produced from agricultural materials – have said the deal could lead to the closure of the country’s two biggest plants.
Mr Reynolds met representatives from both companies and local MPs on Wednesday for talks about the agreement.
In a joint statement, ABF Sugar chief executive Paul Kenward and Ensus chairman Grant Pearson said: “We had a constructive discussion today with the Secretary of State and local MPs.
“We were pleased that the Secretary of State recognised the strategic importance of the UK bioethanol industry and acknowledged the urgency of the situation, with a commitment to act in days, not weeks.
“We will continue to engage closely and constructively with Government over the coming days to help secure a positive outcome for the industry, our workers and the communities we support.”
A Department for Business and Trade spokesperson said: “(The Business Secretary) made clear that the Government is working closely with the industry to understand the impacts on those companies and is open to discussion over potential options for support.
“The Business Secretary agreed to work alongside Cabinet colleagues to look into the issue further and explore putting a process in place to protect future UK production of bioethanol.
“Both sides acknowledged the significance of the sector, and the need for urgent next steps.
“The Business Secretary reiterated the merits of the deal, which will protect thousands of jobs across key sectors – from farming to pharmaceuticals – and lay the groundwork for greater trade in the future.”
Mr Kenward and Mr Pearson told The Times earlier this week that the facilities in Salt End, East Yorkshire, and Wilton, Teesside, would be at risk and the UK industry faced an “existential threat” after the deal.
Under the trade agreement, the first of its kind to be struck by the new Trump administration, the White House agreed to ease some of its sweeping tariffs for industries like cars and steel.
It removed the 25% tariff rate on UK steel and aluminium exports, reducing the trade barrier for these goods to zero, while American levies on British cars fall to 10% for the first 100,000 vehicles exported.
Both sides have said the details of the deal will be worked out in the weeks ahead.