Wrangling continues over UK energy tax

Industry, environmentalists, fight it out over industrial impacts of climate change levy

British industrialists and environmentalists have clashed over the impacts of the country's 18-month old industrial energy tax, the climate change levy, as the government prepares to announce a new environmental taxation strategy later this month.

Industry groups the Confederation of British industry (CBI) and the Engineering employers federation (EEF) issued a joint review on Friday expanding on similar earlier claims that it was damaging Britain's competitiveness (EED 24/09/01). Manufacturers paid net UK£143m (€224m) extra in the levy's first year, the groups claimed. Progress in cutting energy consumption has been "patchy", they added.

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