In the statement, chancellor George Osborne said that the planet would not be saved by shutting down EII industries, including paper manufacturers, which would lead to the "exporting of valuable jobs out of Britain".

CPI director general David Workman said that the plan to increase the Climate Change Levy discount from 65% to 90% in 2013 was particularly pleasing.

The increase will be introduced to offset the impact of the Carbon Price Support taxation.

Woodman said that the increase would save the paper industry around £19m this year, with additional savings of £6m per annum.

He said: "For the first time in many years we have a senior government minister actively proclaim support for manufacturing and EIIs in particular.

"This is very welcome and has come about because of a huge effort by CPI and other industrial bodies in lobbying ministers and civil servants over many months."

However, Workman also warned: "There is still a lot of work to do in following up on the detail of the package of measures announced this week, particularly with those government departments which are less well disposed to supporting our cause."