Business leaders 'unhappy' about changes to CRC

The government announced changes to the Carbon Reduction Commitment as part of the Comprehensive Spending Review.  These changes see the cessation of the process whereby tax revenue generated from the carbon pricing scheme are recycled back in to green projects.  The £1 billion revenue generated each year will now be contributing to reducing the deficit.  Business is concerned as this was not communicated in advance and it was felt that it was more of a “stealth tax” than a contributor to improving upon carbon reduction or energy efficiency schemes.  It is understood that companies will now have to pay £12 per tonne of carbon dioxide they emit and this is likely to increase to £14 from 2013.