HC Deb 25 February 2002 vol 380 cc1033-4W
Mr. Key

To ask the Chancellor of the Exchequer for what reasons he decided not to implement a carbon tax. [36791]

Mr. Boateng

The climate change levy (CCL) was introduced in April 2001 following extensive consultation, and in accordance with the recommendations of Lord Marshall's report on Economic Instruments and the Business use of Energy.

As recommended by Lord Marshall, the Government believe that a downstream tax on energy such as the CCL is the best approach to take to the taxation of energy products, as it allows the Government to balance the need to encourage improvements in energy efficiency with other policy considerations. The extent of fuel poverty in the UK is well established, and the Government do not propose taxing energy use in the domestic sector.