Minister pledges no increase in climate levy without consultation

The Government's plans for the climate change levy emerged unscathed from concerted attacks by both the Conservatives and Liberal Democrats during the Finance Bill's Committee stage in the Commons during May. Strong concerns were voiced about the levy's impact on manufacturing and uptake of combined heat and power. But there was one new concession by the Government which will mean that the levy rates cannot be increased above inflation without a review of the sectoral energy efficiency agreements negotiated with industry.

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