Climate Change Levy (Hansard, 30 October 2001)

§ Mr. Key
To ask the Chancellor of the Exchequer what percentage share of(a) UK gross domestic product and (b) the total to be raised by the climate change levy, the UK engineering industry will contribute in the next financial year. [10696]

§ Mr. Boateng
On the most recently available figures, engineering represents an estimated 6 per cent. of gross domestic product.
The impact of CCL on any sector will be determined by 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. 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 Chancellor of the Exchequer what assessments he has made of the costs of the climate change levy to British industry. [10640]

§ Mr. Boateng
The climate change levy will raise an estimated £1 billion a year, all of which will be recycled back to business through cuts in employers' national insurance contributions and support for energy efficiency. While the levy is broadly revenue neutral across manufacturing and service sectors, it is not possible to say exactly what effect the levy will have on any specific sector or industry. That 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 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. 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 Chancellor of the Exchequer how much revenue was raised from the engineering industry by the climate change levy in the first six months of its operation. [10650]

§ Mr. Boateng
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.
629W
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 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. What use firms in that sector make of electricity generated from levy exempt 'new' renewable sources of energy and combined heat and power.