TaxPersonal TaxErnst & Young in green tax row

Ernst & Young in green tax row

Industry leaders were today poised to reveal a suppressed Ernst & Young report damning the government's proposed climate control levy if top-level talks with the Treasury failed.

Engineering Employers Federation delegates were due to call on the Treasury to climb down from its opposition to extend negotiated agreements in place of levy charges to reduce industry’s use of energy.

Confederation of British Industry director general Digby Jones on Tuesday was also expected to call for the government to shift its stance on the CCL in a speech to manufacturers in Birmingham.

The EEF, which commissioned the report, wanted chancellor Gordon Brown to make further reductions in this month’s pre-Budget report. The tax income element from the levy was reduced in last year’s pre-tax budget from £1.75bn to £1bn, and extend eligibility to an 80% discount for energy intensive sectors that sign efficiency agreements.

Brown’s decision to make no changes to the CCL proposals has incensed the EEF, who claim the Treasury had accepted the report findings that industry would be hard hit by its proposals.

The EEF said Treasury officials in September begged them to ‘sit on’ the E&Y report, which raises serious question marks over the present shape of the levy, until the pre-Budget statement. A Treasury spokesman denied knowledge of the report.

Related Articles

Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

Personal Tax Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

3w Alia Shoaib, Reporter
Rent-a-room relief – the survey says…

Personal Tax Rent-a-room relief – the survey says…

2m Helen Thornley, ATT Technical Officer
What should the OTS prioritise in its review of inheritance tax?

Personal Tax What should the OTS prioritise in its review of inheritance tax?

4m Alia Shoaib, Reporter
LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

5m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

6m Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

7m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

8m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

9m Alia Shoaib, Reporter