§ Mr. Peter AinsworthTo ask the Chancellor of the Exchequer what forecast he has made of annual Exchequer revenues deriving from climate change levy to be paid by the hotel and restaurant industry. [159382]
§ Mr. TimmsIt is not possible to say what the precise effect of the levy will be on any one particular industry. The impact of the levy and the associated reduction in NICs will depend on a number of factors, including: the future energy consumption by firms; the level of employment in those firms; what use they make of electricity generated from 'new' renewable sources of energy; and the extent to which they take advantage of the proposed introduction of a system of enhanced capital allowances for energy saving investments. The hotel and restaurant industry stands to benefit from the exemption of electricity generated from 'good quality' combined heat and power plants.