Climate change levy may be scrapped

The Government’s decision last week to extend by two months the consultation period on its proposed energy tax has fuelled speculation that it is preparing to scrap the plan. The move follows submissions from industry that the climate change levy would damage UK competitiveness, subsidise the public sector and arrest the development of energy-efficient combined […]

The Government’s decision last week to extend by two months the consultation period on its proposed energy tax has fuelled speculation that it is preparing to scrap the plan.

The move follows submissions from industry that the climate change levy would damage UK competitiveness, subsidise the public sector and arrest the development of energy-efficient combined heat and power projects.

`They are beginning to realise that the levy is a stumbling block on several fronts,’ said Lisa Waters, economic adviser to the Energy Intensive Users’ Group, which has been leading the opposition to the proposals.

The Government will receive a report at the end of October on the prospects for using tradeable emissions permits to reduce output of greenhouse gases, and is now thought likely to revise its strategy along those lines.