“One consequence of the government’s commitment to Net Zero has been to make British energy much more expensive. Now, the very same industries based in communities at the heart of the ‘levelling up’ agenda are being rendered uncompetitive.
“The government has attempted to solve this problem with various tax exemption schemes. But these have acted as little more than a sticking plaster.
“The steel, base chemicals, glass and paper sectors had previously been viewed as a serious long-term investment. Now they resemble twitching corpses, destined for one of two fates: another bailout, or nationalisation.
“Instead, the government could implement a single low price of carbon across the economy that only rises when other countries agree to match it. This would avoid damaging competitiveness.”