Budget 2011-12 23rd March - What it means.

• Allowances under the Carbon Reduction Commitment will be priced (as expected) at £12/t. The Government hopes it will publish draft regulations to implement allowance sales later in 2011.
• UK Aiming to be the first country to introduce a floor price for carbon at £16/tonne CO2 in 2013 rising to £30/tonne by 2020.
• Introduce relief for CCS and CHP.
• Remove an existing exemption in the CCL for electricity CHP plants who supply indirectly to an energy consumer.
• Funding for CCS demonstration programme – The Government remains committed to providing public funding for CCS demonstration plants. However, consistent with its objectives for tax simplification, it will not proceed with the CCS levy. It will instead fund its commitments to CCS demonstration from general taxation.
• £3bn has now been allocated for a Green Investment Bank. The GIB will not have borrowing powers until 2015-16, with the caveat that the Government’s target for national debt as a percentage of GDP has been met.
• Fuel duty will be cut by 1p/litre with immediate effect.The Government will also abolish the fuel duty escalator and replace it with a fair fuel stabiliser.
• However there is an increasing the supplementary charge on oil and gas production companies from 20% to 32% which industry says it will have to pass onto the consumer.