BPF calls for clarification over £3.5 billion green stealth tax on business

The British Property Federation has urged government to clarify its plans for the flagship carbon reduction commitment after comprehensive spending review documents revealed a £3.5 billion green stealth tax on business.

The Treasury said today that £3.5 billion to be collected by the scheme over the next four years will be kept by the Exchequer, rather than being returned to companies in the form of recycling payments.

Liz Peace, chief executive, the British Property Federation, said: “The coalition said they wanted to simplify the complexities of the CRC and they have certainly found a novel way to do that. This will not however “remove the burden on businesses” as they claim, but ensure that the CRC will cost the wider business community almost £3.5 billion more than it would have.

“Today’s announcement contains little detail on the Government’s full intentions in respect of the League Table, how allowances sales will function and to what ends the money gathered will be used. We urge the Government to clarify urgently how the revised scheme will function, as people are making decisions today upon it.”