UK businesses pay less green taxes than EU competitors

6th March 2014

Andrew Raingold, Executive Director of the Aldersgate Group, has written to the Times newspaper, arguing that while the UK may be part of a leading group of nations which are taking policy action on climate change, there is no evidence to support claims by manufacturers that they risk forcing jobs overseas by making energy too expensive.

He cites new research by the London School of Economics which demonstrates that medium industrial energy users in the UK pay lower green taxes on their electricity bills than the European Union average. These taxes account for around 8 per cent of total electricity costs in the UK, compared to 23 per cent in the EU.

Andrew Raingold says "this must be taken into account as the Government reviews its carbon commitments. In truth, the UK’s leadership on climate change enjoys widespread support from business".