Clause 197 - Climate change levy: main rates

Finance Bill – in a Public Bill Committee am 3:00 pm ar 18 Mehefin 2013.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Question proposed, That the clause stand part of the Bill.

Photo of Catherine McKinnell Catherine McKinnell Shadow Minister (Treasury)

The climate change levy came into effect in April 2001. It serves as a tax on the non-domestic use of energy such as gas, electricity, liquefied petroleum gas and solid fuel by the business, service and public sectors, and is aimed at promoting energy efficiency and the use of renewable energy so as to meet the UK’s international and domestic targets for cutting greenhouse gas emissions.

Since the rates were introduced in 2007, they have kept pace with inflation. The levy has, therefore, maintained its environmental effect, and on each occasion the rates have increased the changes have been legislated for in the previous year’s Finance Act—precisely what clause 197 provides for. I could say many things about the Government’s efforts to be, in their words, “the greenest Government ever”, but I will save my comments for our discussion under clause 198, to which we have tabled an amendment, and refrain from digressing here.

Photo of Sajid Javid Sajid Javid The Economic Secretary to the Treasury

The clause increases the rates of the climate change levy from 1 April 2014, in line with retail prices index inflation. The new rates will apply to suppliers of taxable commodities to businesses and the public sector on and after that date. The clause increases the rates of the levy from April 2014 in line with RPI, which has been standard practice since 2007. If there are no questions from members of the Committee, I simply ask that the clause stand part of the Bill.

Question put and agreed to.

Clause 197 accordingly ordered to stand part of the Bill.