PracticeConsultingEnergy tax sparks row.

Energy tax sparks row.

Government refuses to back down on charges for Combined Heat and

The Treasury has refused to give in to opposition demands that combined heat and power schemes will be free of energy tax, despite expectations that it would concede the issue. And financial secretary Stephen Timms made it clear to the Finance Bill committee that it is chancellor Gordon Brown’s intention to increase the energy tax in line with inflation. The row came as environment secretary Michael Meacher announced only those CHP schemes with a Quality Index of 100 or more will qualify for total exemption on all heat and power generated and used on site or sold directly to other users. Meacher made it clear those scoring less would be entitled to only partial exemption from the climate change levy. He also announced small-scale schemes of two megawatts or less will be subject to simplified monitoring arrangements. Details are to be spelled out in a formal response to the consultation exercise on CHP schemes ‘shortly’. Liberal Democrat Andrew Stunnell failed in a bid to re-write the new tax and base it on the carbon content of the energy supply for domestic or commercial and industrial use, insisting that provision to help the poor could be made through state support. He demanded: ‘We should not go for the complexity of the plans in their current form when there is a simpler alternative of the carbon tax.’ Timms said the government was determined not to impose new taxes on domestic fuel consumption and add to poverty affecting five million households. Tory MP David Heathcoat-Amory said the tax was too complicated and unnecessarily hit the competitiveness of some industries because the Kyoto commitment to reductions in greenhouse gas emissions could be met by moves towards natural gas combined with voluntary agreements with industry. Heat was also generated by protests that the industry had been misled by Timms about CHP exemption.

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

3m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

9m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

10m Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

11m Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

11m Stephanie Wix, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

10m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

10m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

10m Kevin Reed, Writer