H.M. TREASURY

HM Treasury News Release

135/99

18 August 1999

TIMMS TALKS TO CBI ON CLIMATE CHANGE LEVY

Listening to views and concerns on the design of the climate change levy is high on Stephen Timms' agenda in his new role as Financial Secretary to the Treasury.

At his first official meeting in his new role, Mr Timms met representatives from the Confederation of British Industry to listen to their views and concerns on the climate change levy, which is due to be introduced in 2001.

Commenting after today's meeting, Mr Timms said:

"I was delighted to meet the CBI today and discuss the important issue of the climate change levy.

"There are a number of outstanding design issues relating to the levy, which is why I have been very keen to meet representatives of industry at the earliest possible opportunity.

"I am confident that, by working with industry, we can design the levy in a way that maximises its environmental effectiveness whilst protecting the competitiveness of British firms.

"I look forward to continuing this useful and constructive dialogue with business representatives."

NOTES TO EDITORS

1. The climate change levy will apply to coal, gas and electricity used by businesses. It will come into effect in April 2001.

2. The design of the climate change levy reflects closely the recommendations made in Lord Marshall's report, published in November 1998.

3. In particular, the revenues from the levy will be recycled in full to business. As a result, most businesses will be net gainers from this reform. In addition, the Government has already announced that it intends to set significantly lower rates of the levy for energy intensive sectors that agree targets for improving energy efficiency.

4. The Chancellor announced the Government's intention to introduce a climate change levy, amongst other environmental initiatives, in his March budget. See Press Notice HM Treasury 5, 9 March 1999.