Chancellor's Budget signals likely end for CRC energy efficiency scheme

George Osborne couldn’t have made much clearer his lack of enthusiasm in today’s Budget for the Carbon Reduction Commitment (CRC) Energy Efficiency scheme.

He said: “Environmentally sustainable has to be fiscally sustainable too. The Carbon Reduction Commitment was established by the previous Government. It is cumbersome, bureaucratic and imposes unnecessary cost on business.

“So we will seek major savings in the administrative cost of the Commitment for business. If those cannot be found, I will bring forward proposals this autumn to replace the revenues with an alternative environmental tax.”

My guess is that (conveniently) those administrative costs won’t be found, and that CRC will be killed off. The Government has never thought much of CRC, and has signalled here its intention to end it – though what  – if anything – will replace it isn’t clear.

Enhanced by Zemanta