Chemicals and plastics trade groups in the US hoped that the £3 billion ($3.77 billion) in green policies announced on Wednesday would provide the sectors with the respite to emerging from the coronavirus pandemic. The minister for the economy, Rishi Sunak, earmarked £2 billion ($2.51 billion) in grants for households to improve energy efficiency. Meanwhile, the remaining £1 billion ($1.26 billion) is aimed at increasing energy efficiency in public buildings.
The stimulus is expected to raise energy efficiency in more than 650,000 homes while opening around 140,000 new jobs in the sector. Households are expected to make savings on energy bills and cut CO2 emissions by 500,000 tons/year.
The Chemicals Industry Association (CIA) said the stimulus could support employment in the sector. However, the CIA said the stimulus focused more on the hospitality industry, and it would wait for a broader industry-focused spending plan under the autumn budget.
Meanwhile, the British Plastics Federation (BPF) welcomed the scheme for homeowners as it could boost the UK's plastic industry. BPF director-general Philip Law said the stimulus could stimulate demand from the construction sector. BPF also welcomed the support for the hospitality sector as it could boost demand for plastics used in food packaging.
The minister's stimulus is not the UK's official annual budget. It came as calls for urgent economic measures mounted amid the economic slowdown caused by the coronavirus pandemic. The minister will announce the official budget plan in October.
