AS2011: Reducing green levy will cost £75m

AS2011: Reducing green levy will cost £75m

Reducing the Climate Change Levy will cost the government £75m over four years

THE CHANCELLOR has unveiled further reductions to environmental levies for the most energy intensive businesses in his latest Autumn Statement.

Energy intensive businesses which previously received an 80% discount on the Climate Change Levy (CCL) will now see this increase to a 90% discount from April 2013.

Currently, every business must pay a levy on electricity used directly to its energy supplier. However, all companies which agree with the government to reduce energy consumption receive an 80% discount. The government has now increased that discount to 90%.

The Department for Energy and Climate Change (DECC) has spent the past few years incentivising businesses to make their operations environmentally friendly by discounting levies by 80% if they sign up to a climate change agreement.

The government estimates that the increased discount will cost £75m over four years to 2016/2017.

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