§ Dr. MurrisonTo ask the Secretary of State for Trade and Industry what assessment she has made of the effect of climate change levy after rebates on the manufacturing sector in(a) the United Kingdom and (b) Wiltshire; and if she will make a statement. [18422]
§ Mr. Andrew SmithI have been asked to reply.
The climate change levy became operational only 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, whether nationally or in any particular region, 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.