Britain’s trade deals mean nothing if we neglect our own industries
Trade deals and global ambitions will mean nothing if Britain neglects its domestic industries, writes Shevaun Haviland
In the space of just a few weeks, the UK has set out terms for improved trade relationships with India, the US and the EU. It signals a renewed focus on global trade – and a government determined to position Britain as an ambitious, outward-facing economy.
This momentum is welcome. Busibioetnesses across the UK recognise that access to international markets is vital for long-term growth. But trade deals don’t exist in isolation, they shape decisions in factories, farms and offices across the country.
As we look outward, we must also look inward with the same focus and urgency. We need to ensure the domestic environment supports long-term investment across the economy. From high-growth sectors like technology and advanced manufacturing to the foundational industries that drive supply chains, support energy security and help deliver the UK’s net zero goals.
Bioethanol: A British industry in need of attention
Britain’s bioethanol industry has made headlines in recent weeks due to the challenges it faces from the UK-US trade deal, which removes transatlantic tariffs on ethanol imports.
Domestic production of bioethanol is essential to the UK’s green economy, reducing emissions from everyday transport, supplying high-protein animal feed to British farms and supporting thousands of jobs across regional supply chains, from farmers and hauliers to engineers and technicians.
More than that, bioethanol is increasingly being recognised as a vital building block for fuels of the future. It has the potential to reduce emissions from air travel as well as shipping, areas where decarbonisation is notoriously hard to achieve.
We know the government is committed to growing the sustainable aviation fuel (SAF) market in the UK. But for any such market to take off, it must be rooted in stable domestic supply chains. If industries like bioethanol are weakened or destabilised, we risk losing a critical pathway to that future before it even gets off the ground.
And that’s where business confidence comes in.
Business leaders and investors are watching closely. They understand that trade agreements involve compromise. But they also want to see a government that balances international ambition with domestic strategy.
UK can lead global green industrial strategy
When investors see an entire supply chain sector come under strain, when a domestic industry faces mounting pressure and uncertainty, that doesn’t just affect the companies directly involved. It sends a wider signal. It raises questions about predictability, policy coherence and long-term viability. It makes the investment case harder to justify.
That’s why the BCC is calling for targeted, time-sensitive action to support key sectors that underpin broader strategic goals, particularly in areas like energy security, net zero and industrial resilience. These aren’t special interest pleas, they’re a test of how we make joined-up policy work in practice.
We need government and industry working in partnership to assess where urgent support is needed and to identify regulatory or policy shifts that might level the playing field without distorting competition. This isn’t about shielding businesses from change. It’s about ensuring they are given a fair and stable foundation to compete, invest and grow.
The UK has two large bioethanol plants, Ensus in Teesside and Vivergo in Hull, a site which is just under two weeks away from closure unless the government intervenes. The bioethanol industry is rooted in these regions, supporting skilled jobs in largely rural economies. To lose those industries would undermine our shared efforts to broaden opportunity across the whole country.
With the right support and policy alignment, the UK can show what a modern green industrial strategy looks like in action. We can be a world leader not just in negotiating trade deals, but in using them as a platform to build strong, resilient domestic sectors.
That means backing industries with the potential to drive clean growth. It means responding quickly when active policy choices, however well intentioned, have unintended consequences. And it means understanding that investor confidence is not just about rhetoric or ambition, but about credibility and consistency over time.
The UK has every chance to lead the green industrial revolution. But that leadership will depend not just on the deals we sign abroad, but on the decisions we make at home.
Shevaun Haviland is director general of the British Chambers of Commerce