HC Deb 22 November 1999 vol 339 cc44-6W
Mrs. Brinton

To ask the Chancellor of the Exchequer for what reasons he intends to exempt kerosene as an industrial fuel from the climate change levy. [98584]

Mr. Timms

I refer my hon. Friend to the answer I gave her on 10 November 1999,Official Report, column 644W.

Mrs. Brinton

To ask the Chancellor of the Exchequer if it is his policy that the price differential between liquid petroleum gas and hydrocarbon oils should not be widened to the disadvantage of liquid petroleum gas as a result of the climate change levy. [98585]

Mr. Timms

The price of competing fuels is a commercial matter in which the rates of duty or tax play only one part. The Chancellor has announced his intention to increase rates of duty on fuel oil and gas oil, and this is likely to mitigate incentives to fuel switching after the introduction of the climate change levy.

Mr. Loughton

To ask the Chancellor of the Exchequer what proposals he has for concessionary rates of climate change levy on liquid petroleum gas. [99167]

Mr. Timms

I have no such proposals. Liquid petroleum gas will be subject to climate change levy at the same rate as natural gas.

Mr. Loughton

To ask the Chancellor of the Exchequer on what basis the climate change levy will be revenue neutral for the private sector, as set out in his pre-Budget report. [99170]

Mr. Timms

The climate change levy will be revenue neutral for the private sector because the amount of levy paid by the private sector will be broadly equivalent to the amount private sector businesses gain from the proposed cut in employers National Insurance Contributions and the additional support for energy efficiency measures announced by my right hon. Friend the Chancellor of the Exchequer in his Pre-Budget Report (Cm 4479).

Mr. Loughton

To ask the Chancellor of the Exchequer how the projected two million tonnes of carbon emissions saved as a result of the proposed climate change levy, as set out in his pre-Budget report, is constituted. [99168]

Mr. Timms

The carbon savings projected to arise from the climate change levy are based on estimates produced from the DTI energy model. They arise from reduced energy consumption and from the encouragement of renewable energy sources and combined heat and power systems.

Mr. Loughton

To ask the Chancellor of the Exchequer on what basis he described the proposed climate change levy as revenue neutral between manufacturing and services in his pre-Budget report. [99193]

Mr. Timms

The climate change levy is expected to be broadly revenue neutral between manufacturing and services because, taking into account the 80 per cent. discount for energy intensive sectors that enter into energy efficiency agreements, the amount of levy paid by the manufacturing and service sectors is likely to be broadly equivalent to the amount each gains from the reduction in employers' National Insurance Contributions and the additional support for energy efficiency measures.

Mr. Loughton

To ask the Chancellor of the Exchequer what proposals he has for concessions in respect of the climate change levy for businesses which have invested in energy efficiency measures over the last five years. [99169]

Mr. Timms

The Government welcome the improvements in energy efficiency made by businesses in recent years. All firms that have already made energy saving investments will benefit from lower energy bills—and consequently a lower tax liability—than otherwise would have been the case. And the many firms that have invested in combined heat and power (CHP) plant will benefit from the proposed exemption of electricity generated in CHP plant from the levy.

The Government have also made clear that previous investments in energy efficiency measures will be taken into account in setting future targets for improving energy efficiency under the negotiated agreements with energy intensive sectors.