Changes to the Carbon Reduction Commitment energy efficiency scheme will cost businesses 拢3.5bn

Businesses are accusing the government of introducing a green stealth tax following changes to its Carbon Reduction Commitment (CRC) energy efficiency scheme announced in yesterday鈥檚 comprehensive spending review.

The scheme, which started in April, is a mandatory emissions trading scheme that affects both public and private energy users such as supermarkets and healthcare trusts.

It has been revealed that funds raised by a levy on firms鈥� energy consumption will not now be given back to those who cut their bills the most but will instead be pocketed by the government. It could amount to 拢3.5bn over the next four years.

The British Property Federation has urged government to clarify its plans. Liz Peace, chief executive said: 鈥淭he coalition said they wanted to simplify the complexities of the CRC and they have certainly found a novel way to do that. This will not however 鈥渞emove the burden on businesses鈥� as they claim, but ensure that the CRC will cost the wider business community almost 拢3.5bn more than it would have鈥�.

Peace urged the government to clarify urgently how the revised Scheme will function, 鈥渁s people are making decisions today upon it鈥�.


David Johnston, commercial real estate partner at law firm Berwin Leighton Paisner said it鈥檚 a retrograde step. 鈥淭hose that have led the way on carbon reduction are now being penalised. The industry recommends that new legislation on sustainability should blend a 鈥檆arrot and stick鈥� approach to encourage property owners and managers to make the UK鈥檚 existing property stock to meet CO2 targets. It seems the Government is now removing the carrot at a time when businesses are facing increasing uncertainty and pressures on costs鈥�.

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