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Friday, October 22, 2010

Fury Over £1 Billion Stealth Carbon Tax in Spending Review


About 5,000 large and medium-sized companies with bills of more than £500,000 per year will be hit by the new tax.

George Osborne, the Chancellor, did not mention the levy in his spending cuts speech. But the details were buried in Treasury documents setting out how money will be raised to pay down the deficit.

Starting in April 2012, the Treasury plans to collect money from all businesses forced to enter its Carbon Reduction Commitment (CRC) scheme.

The green measure was due to be introduced in April 2011 to force companies to buy "allowances" at £12 for every tonne of carbon dioxide they emit.

Previously, the best performing businesses would have received rebates if they reduced emissions, while poor performers would pay in full. The scheme will now simply penalise companies according to the amount of carbon dioxide they produce.'

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