§ 27. Mr. SymsTo ask the Secretary of State for Trade and Industry if he will make a statement about the cost to business of the proposals for new energy taxes. [90036]
§ 28. Mr. GrayTo ask the Secretary of State for Trade and Industry if he will make a statement about the impact of the climate change levy on business. [90037]
§ Mr. BattleI welcome the representations from so many quarters of industry and business that something must be done to tackle climate change and to reduce emissions of greenhouse gases.
The new climate change levy is intended to encourage energy efficiency in business and to contribute towards our commitments to reduce greenhouse emissions.
Any assessment of the impact of the levy will depend on the final rates of tax which are set by my right hon. Friend the Chancellor of the Exchequer. HM Customs and Excise has previously published a consultation document on the design of the levy, which included some rates, but for illustrative purposes only.
The Government has promised that there will be significantly lower rates of levy for those energy intensive sectors, covered by the EU Integrated Pollution Prevention and Control Directive, which are prepared to enter negotiated agreements with the Government to deliver energy efficiency improvements and/or emissions reduction targets. Discussions with a number of energy intensive sectors are under way to develop outline negotiated agreements for their sectors.
The Government is determined to work closely with business on the detailed design and implementation of the climate change levy, and will take final decisions in the light of the responses to the Customs and Excise consultation as well as representations received from business and others.