Industry NewsThe January 2012 Fuel Duty increase has been cancelled and the Climate Change Levy (CCL) discount for Climate Change Agreement (CCA) participants has been increased as part of the Autumn Statement. The economic update from the Chancellor has also pledged to help business deal with the costs of planned changes in the energy industry. The Autumn Statement is effectively a re-branded pre-Budget report and highlighted that the UK economy is struggling, but the Government does not expect the UK to fall back into recession, despite recent OECD forecasts.
The expected Fuel Duty increase of 3.02 p/litre was to have come in from the start of 2012. As well as cancelling that, the CCA discount from CCL will be increased from 80 to 90 per cent. Business are also getting help in the shape of financial support to mitigate the impact of instigating the carbon floor price, although this will require State Aid approval from the European Commission.
Discussions with the Commission are also ongoing regarding rules that will allow the Government to help business to cut the indirect costs they face from the Emissions Trading Scheme. Amongst the proposals, the Chancellor highlighted the potential for aid to energy intensive industries to cover the impact of the UK's Energy Marker Reform (EMR), such as the costs of supporting the Feed-in Tariff.
Unveiling the Autumn Statement, Chancellor George Osborne commented, "I am worried about the combined impact of the green policies adopted not just in Britain, but also by the European Union, on some of our heavy, energy-intensive industries. We are not going to save the planet by shutting down our steel mills, aluminium smelters and paper manufacturers. All we will be doing is exporting valuable jobs out of Britain."