UK Bioethanol Industry Faces Collapse Amid Lack of Government Support

The UK bioethanol industry, vital for green fuel and supported by thousands of jobs, is at risk of collapse due to lack of government aid. This situation arises from a tariff deal with the US, complicating matters for British producers. The industry's fall highlights global trade challenges.

The British government announced on Friday its decision not to provide financial support to the struggling bioethanol industry, which is reeling under the recent UK-U.S. tariff deal. With thousands of jobs at stake, the industry's collapse could cause significant political embarrassment for Prime Minister Keir Starmer.

Critics highlight this as a tangible fallout from the global disruptions in trade policies initiated by former President Donald Trump, affecting byproducts like animal feed and carbon dioxide production. A government spokesman defended the decision, citing that direct funding would neither benefit taxpayers nor solve the industry's deep-seated issues.

Bioethanol, made from crops like wheat, is crucial for greener petrol and sustainable aviation fuel. Despite the UK's initiatives toward a green economy, groups like AB Foods have begun closing operations, blaming hostile market conditions exacerbated by the trade deal and regulatory landscape.

(With inputs from agencies.)