George Osborne makes the right noises, but does nothing to make Britain competitive One reason manufacturing firms in Britain and the EU find it harder to compete is due to rising energy prices. The EU has imposed an energy policy which encourages energy companies to generate so-called "renewable" energy. Because this cannot be done as cheaply as burning fossil fuels, renewable energy has had to be subsidised, pushing up energy costs in the round. Far from trying to stop this, the Chancellor and his neighbour in Downing Street have been at the forefront of calls for more stringent renewable energy targets. Only last week, the PM reiterated his commitment to a policy that will push up energy costs. On the contrary, Osborne has been pushing for the Single Market to be extended. Given that excessive regulation has been introduced under the auspices of the Single Market, extending the Single Market to services will increase the regulatory drag on UK firms. The Chancellor might complain about the extra burdens imposed on business. It is, of course, his own department that has been forcing firms to act as unpaid tax collectors. Even relatively small firms are now required to report their tax returns in real time. Great for a tax-hungry Treasury. Not such good news if you are a firm trying to keep your costs down. As so often with this administration, the Chancellor seems to think that it is all about making the right noises. For four years, the Chancellor has relied on cheap credit and a fiscal stimulus to generate economic growth. Thus far he has done almost nothing to address the problems of competitiveness that he now pays lip service to.