Why the Government needs to listen carefully to the concerns of bioethanol producers

The deal with the US is to be welcomed in principle. Britain needs to start fulfilling its promise as a trading nation post-Brexit. Then there is also the desperate need to mitigate the worst of Donald Trump’s damaging tariffs.

The fact that Sir Keir Starmer’s Government managed to get a deal over the line is a display of shrewd statecraft.

However, the lowering of tariffs on ethanol imports from the US to zero has put at risk thousands of jobs in Britain.

This could also have an adverse impact on the agricultural sector with farmers relying on selling wheat that isn’t good enough for bread to bioethanol plants. The last thing hard pressed farmers need is for an income stream to be snuffed out.

The country cannot afford the loss of sovereign capability over what is becoming another strategically essential sector. This is the high-wire act that the Government needs to be mindful of.

There is no denying that protecting the steel industry from Trump’s tariffs is crucial for jobs and steel security in Britain. While negotiating a reduction in tariffs for British carmakers will also prevent jobs from being lost. But the warnings from British bioethanol producers are a reminder of the trade-offs required to secure a deal.

In relation to the bioethanol sector it could also damage the Government’s drive to net zero. Closure of plants would lead to a reduction in the possible sources of production of sustainable aviation fuel.

Therefore it is important that the sector is provided support to safeguard jobs. At the very least the Government needs to continue dialogue with British bioethanol producers.