“Scrap the Carbon Price Floor” says EEF

The EEF (www.eef.org.uk) has published a report calling for the Government to scrap the Carbon Price Floor and move away from ‘green’ taxes that “penalise” businesses and instead use tax incentives to reduce carbon emissions.

The Low-carbon economy — moving from stick to carrot forms the EEF’s response to the review of carbon taxes announced by the Chancellor in the July Budget and comes ahead of climate-change talks in Paris later this year.

Paul Raynes, EEF director of policy, said: “The current system of energy taxation is too complex and is hurting Britain’s competitiveness. 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.

“The 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.”