§ Mr. FlightTo ask the Chancellor of the Exchequer how revenue from the climate change levy is(a) classified and (b) allocated to spending programmes. [38394]
§ Dawn PrimaroloReceipts from the climate change levy are classified as general taxation revenue. The levy package is revenue-neutral for business on account of measures introduced alongside the levy which reduce other business taxes or direct additional spending towards energy efficiency and renewable energy technologies, from which business can benefit.
1571WFirst, employers' national insurance contributions have been reduced by 0.3 percentage points. Secondly, a fund worth £50 million per annum to support energy efficiency and renewables has been allocated to Departments as follows (approximate figures):
Amount pa Department Purpose £26.5 million approx DEFRA Energy efficiency—allocated to Carbon Trust £6 million approx Devolved administrations Energy efficiency—allocated to Carbon Trust £13 million DTI Renewables £4 million DEFRA Energy crops Thirdly, the levy package includes a scheme of enhanced capital allowances to provide further support to businesses investing in designated energy saving technologies. As this is a tax allowance scheme it does not involve the allocation of revenue to a spending programme and the cost of the scheme depends on take up.