Posted on: 23/02/2016
CBI Director-General Carolyn Fairbairn has called on Chancellor George Osborne to give investors a clear view on his plans for the Levy Control Framework (LCF) beyond 2020-21.
Clarity over the future of the LCF, which regulates the amount of cash available for low-carbon power generation, is also needed, the CBI said in its Budget submission.
The business group also wants visibility on the future path for the Carbon Floor Price beyond 2020.
“The CBI believes that, in the short term, an extension of the current freeze would strike the right balance between encouraging low-carbon investment and tackling high energy costs relative to other European nations,” the trade body said.
Fairbairn also called for a simplification of business energy efficiency taxes.
“The CBI’s preference is for a merger of the Carbon Reduction Commitment and the Climate Change Levy,” she said.
The lobbying group also wants a review of the Capacity Mechanism to make sure investors back the UK Government’s vision for the transition from coal to gas over the next nine years.
> Read the CBI's Budget submission