§ Mr. BoswellTo ask the Secretary of State for Trade and Industry what evaluation he has carried out on the impacts of a climate change levy, rebated by a general reduction in national insurance contributions, on the(a) steel, (b) chemical, (c) aluminium, (d) cement and (e) other major energy-using industries. [86043]
§ Mr. BattleMy Department is having extensive discussions with business on the impact of the climate change levy, and the accompanying reduction in employer National Insurance Contributions (NICs), which were announced by my right hon. Friend the Chancellor of the Exchequer in his 9 March Budget.
The Government have said that they wish to implement the climate change levy in a way which minimises any adverse impact on the competitiveness of UK business. I welcome the recognition of the special circumstances of intensive energy sectors and the planned negotiated agreements with them, which will enable them to get significantly lower rates of the levy in return for commitments to improve their energy efficiency or reduce emissions.
My right hon. Friend the Chancellor of the Exchequer will decide the final rates of the levy, including the discounts for intensive energy users which enter 343W negotiated agreements. The overall impact of the levy, coupled with the reduction in employer NICs, on these sectors will depend on these decisions. The Government will continue to listen to the views of business and as raised in response to the Customs and Excise consultation, which ended on 28 May and final decisions will be taken in the light of these.