§ David MacleanTo ask the Chancellor of the Exchequer how much VAT revenue he forecasts will be raised in the current financial year as a result of the introduction of the climate change levy and consequent application of VAT. [1168]
§ Mr. BoatengBusiness will be able to reclaim the majority of VAT paid on the Climate Change Levy (CCL). We estimate therefore that the introduction of the CCL might lead to additional VAT receipts of around £30 million, significantly below the £1 billion expected to be raised by the levy in the first year. All revenues from the CCL will be recycled back to business through a 0.3 percentage point cut in employers' national insurance contributions and additional support for energy-efficient measures and energy-saving technologies.