HC Deb 30 October 2001 vol 373 cc584-5W
Mr. Hammond

To ask the Secretary of State for Trade and Industry if she will make a statement on the impact of the climate change levy on British industry. [10990]

Mr. Wilson

The climate change levy only became operational in April this year and the first payments are still being received by Customs and Excise. It is too early to assess its impact, but the levy is operating in the planned revenue neutral manner.

The impact on any specific sector 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 reduction of 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 'new' renewable sources of energy and combined heat and power.

Mr. Key

To ask the Secretary of State for Trade and Industry what recent representations she has received from industry about the effects of the climate change levy. [10639]

Mr. Wilson

The Department has received many representations from businesses about the climate change levy, raising concerns about its impact on businesses' costs and competitiveness and arguing for amendments to its design. The levy has been introduced in line with the Government's Statement of Intent on environmental taxation to contribute towards the UK's commitments to reduce emissions of greenhouse gases, while protecting business competitiveness. HM Treasury has made it clear that the levy will be kept under review, as with any other new tax measure. The Government are keeping in touch with business on the levy to monitor initial experience with its operation.

Mr. Key

To ask the Secretary of State for Trade and Industry what recent representations she has received about the climate change levy from the engineering sector. [10641]

Mr. Wilson

The Department has received representations from the Engineering Employers Federation and others in the sector about the climate change levy, raising concerns about its impact on businesses' costs and competitiveness and arguing for amendments to its design. The levy has been introduced in line with the Government's Statement of Intent on environmental taxation to contribute towards the UK's commitments to reduce emissions of greenhouse gases, while protecting business competitiveness. HM Treasury has made it clear that the levy will be kept under review, as with any other new tax measure. The Government are keeping in touch with business on the levy to monitor initial experience with its operation.