§ Mr. LlwydTo ask the Chancellor of the Exchequer (1) how much the Treasury estimates that small and medium enterprises in Wales will have to pay under the climate change levy; [154554]
(2) by how much he estimates that costs to small and medium enterprises in Wales will decrease as a consequence of the reduction in employers' National Insurance Contributions. [154556]
§ Mr. TimmsThe climate change levy will be revenue neutral overall, and broadly neutral between services and manufacturing. The levy will raise an estimated £1 billion in its first year, all of which will be recycled back to business via a 0.3 percentage point cut in employers' National Insurance Contributions and through support for business energy efficiency. The effect on any specific business sector or area will depend on a number of factors, including their future energy consumption, their levels of employment, eligibility for discounts, use of exempt renewable energy or combined heat and power, and the extent to which they take up energy efficiency advice and the enhanced capital allowances for energy saving investments.