Climate Change Levy (Hansard, 14 November 2001)

§ Mr. Watts
To ask the Chancellor of the Exchequer what steps the Treasury is taking to monitor the impact of the climate change levy on(a) manufacturing industry and (b) the service sector; and if he will publish the results. [14333]

§ Mr. Boateng
The climate change levy package is broadly revenue neutral for services and manufacturing but the impact on any specific sector will depend on a number of factors, includingThe 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 reductions in employers' National Insurance Contributions. 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. What use firms in that sector make of electricity generated from levy exempt sources such as new renewables and combined heat and power.
As with all taxation, we will monitor revenue and sectoral impacts. Revenue receipts are published in the Financial Statement and Budget Report.

§ Mr. Barnes
To ask the Chancellor of the Exchequer what plans he has to exclude the nuclear power industry from the climate change levy. [14138]

§ Mr. Boateng
The climate change levy is designed to encourage energy efficiency across the business and public sectors and to increase the use of sustainable forms of energy. The Government have no plans to exclude the nuclear power industry from the levy.

§ Mr. Bercow
To ask the Chancellor of the Exchequer (1) what percentage of the climate change levy is paid by engineering; and if he will estimate the percentage of economic output produced by engineering; [14431]
(2) if the climate change levy is revenue neutral for the engineering sector. [14424]

§ Mr. Boateng
The climate change levy is designed to be broadly revenue neutral across both the manufacturing and service sectors. The impact of the levy on any particular sector will be determined by a number of factors, includingThe future energy consumption of firms in the sector and the use they make of levy funded energy efficiency support. Employment levels in the sectors and the benefits received from the levy funded National Insurance contribution cuts. The number of energy intensive firms in the sector that are eligible to receive a discount on the main rates of the levy by signing up to an energy efficiency agreement. What use firms in that sector make of electricity generated from levy exempt "new" renewable sources of energy and combined heat and power.
On the most recently available figures, engineering represents an estimated 6 per cent. of gross domestic product.