UK Manufacturers Lay Out Plan for Simplified Carbon Tax Rules

Environmental Leader - EEF, a manufacturers’ organization in the UK, is calling on the government to reform its climate change policy, which is threatening the competitiveness of UK businesses, reports The Manufacturer. The group is calling the policy chaotic, overcrowded and complex. EEF says a new single tax based on energy use would simplify the system, allow businesses to budget more easily and encourage them to invest in cleaner energy, reports The Guardian.

The EEF report, “Changing the Climate for Manufacturing,” released ahead of the Budget, shows how the Climate Change Levy (CCL), introduced ten years ago, fails in four key areas, which the group says should form the foundation of a new approach. They include:

• Incentives must be clear, reliable and transparent
• Regulation should target the right places
• Regulation must be simple and not administratively burdensome
• Measures and initiatives must take clear account of their impact on the competitiveness of businesses subject to regulation