AS2011: Reducing green levy will cost £75m

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.

Related reading