§ 19. Sir Sydney ChapmanTo ask the Chancellor of the Exchequer what assessment he has made of the effect on business activity of the climate change levy. [154616]
§ Mr. TimmsThe climate change 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 substantial investments in energy efficiency.
The Government expect the levy to be broadly neutral between services and manufacturing. The effect on any specific business, sector or region will depend on a number of factors, including their future energy consumption, the level of employment, eligibility for discounts, use of renewable or combined heat and power energy, and take-up of enhanced capital allowances.