by Rebecca Walker — October 22, 2010—Changes to the way the Carbon Reduction Commitment are being managed have essentially created a new business tax, said an official with BIFM, the British Institute of Facilities Management.
The government’s comprehensive spending review includes a change to revenue generated by the CRC scheme. Instead of being returned to participating businesses, it will now be pocketed by the government and “used to support public finances, including spending on the environment.”
The government said that the move had simplified the CRC scheme and reduced the burden on businesses.
But Bill Wright, energy advisor at the BIFM, said the move was nothing but a tax on businesses, with those spending around 50m a year on energy being forced to spend around 4m a year on allowances.
“Businesses have been let down,” he said. “The first allowances will now be purchased in 2012, pushed back from 2011, which does give businesses time to prepare for the extra cost, but to call this move a reduction on the burden felt by businesses is just wrong.”
The incentive to take part in the CRC has never been greater, Wright added. “The less energy we use, the less we have to pay into the scheme.” For more information, see the BIFM Web site.
