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Government 'will consult on environment tax' if CRC scheme red tape proves too much

Budget announcement paves the way for scrapping CRC

George Osborne has promised to bring in a new scheme to replace the Carbon Reduction Commitment Energy Efficiency Scheme for large energy users if it proves impossible to reduce the red tape surrounding it.

He conceded that the current CRC scheme placed too high an administrative burden on firms and if it proved too difficult to cut that burden, the government would consult with business on the shape of a new environment tax.

John Cridland, Director-general of the CBI responded by saying:

“The Government is wasting time by announcing yet another consultation on the Carbon Reduction Commitment, rather than getting on with scrapping this complex and bureaucratic scheme.”

The British Property Federation has urged the government to adopt a simple carbon tax based on the energy used in buildings instead.

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