As the full social economic implications of the closure of the Rio Tinto Alcan smelter at Lynemouth are digested in Whitehall, it is worth considering what lessons must be learned.
Yesterday, I highlighted how the cumulative impact of energy policies, including the proposed carbon tax, has substantially increased costs for Energy Intensive Industries within UK manufacturing. The Alcan aluminium smelter at Lynemouth is one of hundreds of others firms across the UK now exposed to considerable energy cost rises and levies. It is essential that George Osborne announces relief and additional support as soon as is practicable so that other companies aren’t tipped over into choosing closure.
The second part to the equation is the aggressive profit targets Rio Tinto sets its sites.
