Manufacturers call for rethink on green taxes

An EEF report has called for the scrapping of the Carbon Price Floor as part a move towards reducing emissions. They recommended the Government move away from green taxes, which penalize businesses, and to instead use tax incentives to reduce carbon.

The report is named “The Low Carbon Economy - From Stick to Carrot”. It calls for the Government to use the review to take a bold and new approach to energy and climate change policy to cut cost for energy users and reduce administration.

EEF Director of Policy, Paul Raynes, said:

“The current system of energy taxation is too complex and is hurting Britain’s competitiveness. So instead of simply hitting firms with the big stick of ever-higher carbon taxes and levies, we should be offering them the carrot of tax breaks to invest in potentially very profitable advanced low carbon technologies."

“Government should use the energy taxation review as an opportunity to step back, and make some bold decisions that can reduce energy costs, cut back on carbon emissions and improve the environment.” “It is clear that substantial opportunity exists to reduce emissions in heavy industry but that significant barriers must be tackled if we are to realise it. Industry wants to step up to the plate but cannot do so alone, this must be a partnership between us and government. In the absence of an innovative new approach to reducing emissions in these sectors we shall simply see existing policy damage competitiveness, chip away at investment and ultimately undermine these industries."

“It is no secret that the low-carbon transition provides a major opportunity for manufacturers, but unfortunately it is not one we have been fully able to grasp to date, this needs to change. UK industry has a long and illustrious history of technological innovation; we must ensure that government policy strives to better unlock this potential and deliver the benefits to the UK economy and our climate ambitions.”