George Osborne has come up with a £1bn a year toll, mainly on businesses, which is so complicated that some may not spot it straight away.
There is an existing scheme called the “CRC Energy Efficiency Scheme” which applies to about 5,000 heavy users of energy (mostly companies but also councils and government departments). At the moment those who cut their carbon use receive net payments out of the programme paid for by those who are penalised for their heavy use.
That “revenue recycling” is going to end. Prepare for an extra £715m cost on business in 2011/12, rising to over a billion pounds in 2014/15.
Should we expect a letter to Osborne from large companies complaining about this new burden?