During today’s Autumn Statement the Chancellor George Osborne is expected to inject hope into the British economy to halt the feared double-dip recession. One of these measures will benefit intensive business energy users with a relief on their carbon taxes which could represent savings of up to 10% on their business electricity bills.
If confirmed these carbon taxes rebates will help British companies become more competitively internationally. Intensive business electricity users have complained that right now the carbon taxes harm their international competitiveness.
Germany offers carbon tax rebates worth more than €5 billion a year and high energy users only pay €0.5 of a €35 tax. Estimates are that the British rebate will be worth a total of ￡212 million for the period 2012-2016 for those affected by the EU-ETS tax or the CCL (Climate Chance Levy). Another ￡250 million will also be available for companies affected by the upcoming carbon price floor.
Right now current tax proposals are making investors think twice before investing in the British economy which is the case of the multinational Tata Steel who claimed that the way things are its board is thinking twice about a ￡1.2 billion investment in the UK.
“[The measures] will help make sure energy intensive industries are internationally competitive, but the government remains committed to the green agenda and to cutting carbon emissions by 80 percent by 2050,” a Treasury source said.
But as usual there the green activists who claim that these measures will stop the development of more energy efficient process. Doug Parr, Greenpeace Policy Director was the first to criticise the upcoming measures:
“Energy intensive users already received a huge windfall when they were handed free pollution permits under the emissions trading scheme,”
“Now is not the time for George Osborne to be caving in to the special pleading of vested interests.”
This is a very delicate subject on one side we have the British economy on the verse of a double-dip recession with the Government trying to halt it. On the other side we have all the Climate Change Agreements and Commitments which could cost the economy millions of pounds in fines if we fail to comply to them in the years to come.