Steel giant says carbon floor price will make UK steel makers uncompetitive
Tata has warned a new carbon tax will deal 鈥渁 potentially severe blow鈥� to the steel manufacturing giant.
The plan to introduce a floor price for carbon unveiled in Wednesday鈥檚 Budget will make UK steel makers less competitive, Tata said.
Karl-Ulrich K枚hler, head of Tata Steel鈥檚 European operations, said the tax was 鈥渆xceptionally unhelpful and potentially damaging鈥�.
The chancellor George Osborne unveiled the new minimum price for carbon emissions on Wednesday to help fund investment in green energy.
The floor price will be set at 拢16 per tonne from 2013, rising to 拢30 a tonne by 2020.
Osborne said in his Budget: 鈥淭his will provide the incentive for billions of pounds of new investment in our dilapidated energy infrastructure.鈥�
The Budget predicts the levy will raise more than 拢740m for the Treasury in 2013-14, rising to just over 拢1bn in its second year and 拢1.4bn in its third year.
But Tata fears the floor price will hit energy-hungry industries including steel hard, resulting in UK steel beingtata steelcarbonosborne less competitive.
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