Haven Power

Government plans to scrap CRC

Government plans to scrap CRC


 

The government has set out plans for major reforms to the energy efficiency tax landscape for businesses. In a consultation published on Monday 28 September, the Treasury said it wanted to “streamline taxes in a way that reduces variations in tax rates faced by different users, simplifies the tax system and strengthens the price signal”. It proposed to achieve this by replacing the Carbon Reduction Commitment (CRC) and Climate Change Levy (CCL) with a new energy consumption tax based on the CCL. The government also said it was open to considering options for new incentives for energy efficiency. Responses to the consultation are invited by 9 November.

 

HM Treasury