Today’s Budget brings good news for businesses frustrated by the current complexity of carbon tax and reporting schemes, but the impact of abolishing the Carbon Reduction Commitment (CRC) and directly taxing businesses for every unit consumed means there will be winners and losers.
The CRC currently brings ca. £900 million of revenue to Treasury each year: smearing this across all CCL-paying businesses means many organisations will face higher energy costs, particularly for those not currently captured by the CRC. Energy efficiency will have to become a strategic priority for all businesses to mitigate rising energy costs from 2019.
The original objective of the energy efficiency tax review was to simplify schemes and reduce administrative burdens; the measures announced today have not fully addressed this: the consultations on a single reporting framework and energy efficiency incentives will be crucial to ensure April 2019 heralds a new dawn for the business energy landscape.