Business group calls for carbon tax freeze to boost UK industry
THE CONFEDERATION of Business Industry (CBI) today called for the government to freeze a tax on carbon emissions, arguing that it prevents businesses from competing internationally and raises customers’ energy bills.
The carbon price floor is a levy on greenhouse gas emissions, aimed at encouraging investment in low-carbon energy generation.
But the business group claims that the charge is higher than an EU equivalent, putting UK businesses at a competitive disadvantage.
“British businesses, especially energy-intensive industries, are struggling with high energy costs so we want to freeze the carbon price floor to help firms compete internationally, as well as ease pressure on household bills,” said John Cridland, CBI director-general.
The CBI also called for the government to do more to support small and medium-sized businesses , to introduce a capital allowance to encourage infrastructure investment and to freeze an air passenger tax. HM Treasury declined to comment on the budget, due out on 19 March, but said there was a strong case for setting out a price for carbon emissions.