Nigel Billingsley, Partner at Bruton Knowles, urges the Labour Government to continue commencing renewable energy projects despite trade pressures from US tariffs. These were introduced at the beginning of April by the President of the United States, Donald Trump, on all countries outside of Mexico and Canada.
Tariffs are government-imposed taxes on imported goods and services from other countries, which add an extra cost to them when they enter a foreign country. President Trump believes they will boost American manufacturing and protect jobs.
As a result, the UK now faces a 10% tariff on exports to the United States, with certain sectors – including steel, aluminium, and automotive – subject to even steeper duties of up to 25%.
The new measures come at a time when British Steel is already under pressure and has given the British Government fresh urgency to issue emergency legislation. This allowed them to take control of a Scunthorpe Plant, as it faces financial difficulties and a threat of job losses.
Chancellor of the Exchequer, Rachel Reeves, has assured the UK that the Government is working hard to broker a deal with the Trump Administration to lower tariffs.
Nigel has cautioned that if the tariffs on these physical elements remain, it could set the UK’s infrastructure projects back at a time in which the Government has been focused on speeding up the planning permission to get these developments underway.
“Not long ago, the Government introduced the Planning and Infrastructure bill with the goal of streamlining the planning process and removing unnecessary barriers to development to get Britain building again.
“However, these tariffs are going to create an adverse effect when it comes to meeting these goals as they will cause the cost of the materials needed for the projects to increase. Another key issue here is we’ve already seen the tariffs creating a huge amount of economic uncertainty, not just in the UK but globally, reducing the chances of people investing their money.”
The Planning and Infrastructure Bill, issued by the Government at the beginning of March, is central to its plans for building 1.5 million UK homes per year. The bill also showcased Labour’s commitment towards accelerating the delivery of clean and renewable projects, as they continue to aim for net zero by 2050.
Despite this, Nigel warns of the effect that the increased tariffs might have on the green energy sector: “We are seeing a trend at the moment, where a lot of big companies such as BP and Shell are scaling back on their renewable energy investments to prioritise their profits. The current increase in tariffs might lead to this happening more in the UK.
“Because Tariffs are causing a hike in prices, companies may decide that they cannot justify the amount they are investing in renewable energy and follow suit of companies across the globe.
“Pushing on with our green energy efforts is truly a once-in-a-generation opportunity and we need to remember that. Historically, we have missed getting the correct technology in place early on, like when Government policies towards onshore wind caused its growth to slow down in 2010. If we keep moving forward with it now, we will reap the benefits in the next 10 years. I urge the Government to take action and keep these renewable energy projects progressing.”
