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MPs back Climate Levy
19 July 1999
Contrary to press speculation, the TISC has upheld the principle of the Climate Change Levy. FOE fully supports the Government in shifting the burden of business taxation off jobs by using the lion's share of the Climate Change Levy revenues to cut employers'NIC and so boost employment. However, the £50 million earmarked for helping SMEs to invest in energy efficiency needs to be increased once its role has been properly defined. FOE has for several years called for successive Chancellors to follow the Dutch system of providing tax credits for investment in new environmental and energy efficiency technologies.
Like TISC, FOE believes that there is a case for exempting energy intensive industry from the levy. However, FOE cautions Government against believing that the noise of industrial complaint presents proof that the Levy will be bad for business. The vast majority of firms will gain competitive advantage through investing in energy efficiency as a result of the levy - These benefits, as TISC observed, have “so far has been overlooked.” Any exemptions from the levy must only be negotiated with companies who were genuinely energy intensive.
FOE welcomed the Committee's recommendation that more must be done to promote renewables and Combined Heat and Power through the levy, but urged Government to ignore the proposal for exemptions for nuclear power.
FOE Energy Campaigner Mark Johnston said:
“Despite all the bellowing from the fossil fuel dinosaurs, the Government must stand firm on its climate change levy. Not only is the levy critical to the fight against climate change, it will be good for jobs and industry too.”
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Published by Friends of the Earth Trust
Last modified: Jul 2008
