§ John Healey
The climate change levy is expected to raise about £0.9 billion from business and the public sector in 2002–03. This has been recycled back to these sectors through a 0.3 percentage point cut in employers'national insurance contributions, support for enhanced capital allowances for investments in energy efficiency measures, and spending on renewable energy and energy efficiency, principally through the Carbon Trust.
The levy package is expected to be broadly revenue neutral between industry and the service sector. It is not possible to determine the impact on individual sectors as this depends on the extent to which they are eligible for discounts for energy-intensive users, their use of levy-exempt renewable energy and combined heat and power, and their take-up of the enhanced capital allowances and support from the Carbon Trust.
§ Mr. Prisk
To ask the Chancellor of the Exchequer (1) what measures have been taken to assist sectors that are unable to comply with the Integrated Pollution Prevention and Control Directive, and are ineligible for a rebate on the climate change levy, with the cost of the climate change levy; 
(2) what measures his Department has taken to assist small businesses to meet the cost of the climate change levy. 
§ John Healey
The climate change levy (CCL) was introduced in a package which involves reductions to employer national insurance contributions and support for energy efficiency, which is broadly revenue neutral to business as a whole. As part of the package, the Government supports businesses investing in approved energy-saving technologies through enhanced capital allowances. All businesses can take advantage of the help available from the CCL funded Carbon Trust which supports energy efficiency improvements by business and the development of low carbon technologies. Some of the Carbon Trust schemes, for example their small firms loan scheme, are intended specifically to benefit small firms. In addition, many of the smallest businesses'energy use will be below that at which levy becomes payable, so will not pay any levy at all.
In recognition of the need to protect the competitiveness of energy-intensive industries subject to international competition, the Government allows an 80 per cent. discount from the levy for businesses in energy-intensive sectors covered by the Integrated Pollution Prevention and Control (IPPC) regime, providing they have entered into climate change agreements with the Department for Environment, Food and Rural Affairs 383W (DEFRA) to meet two-yearly energy efficiency targets. The Government targets relief from the levy on those sectors covered by the IPPC as it covers the main energy-intensive sectors subject to international competition.
Finally, in order to give all businesses an incentive to agree to emissions targets, the Government have also launched the UK emissions trading scheme, with an incentive worth £150 million after tax over five years.