§ Mr. BercowTo ask the Chancellor of the Exchequer what plans he has to assess the impact of the climate change levy on employment in the manufacturing sector. [20467]
§ Mr. BoatengThe climate change levy only became operational in April this year and the first payments are still being received by Customs and Excise. It is too early to assess its impact.
However, the impact on any specific sector will depend on a number of factors, including:
- The future energy consumption of firms in the sector and the use they make of levy funded energy efficiency support.
- Employment levels in those sectors and the benefits received from the levy funded national insurance contribution cuts.
- The number of energy intensive firms in that sector that are eligible to receive a discount on the main rates of the levy by signing up to an energy efficiency agreement.
- The use that firms in that sector make of electricity generated from levy exempt 'new' renewable sources of energy and combined heat and power.