Carbon Tax

Exiting the European Union – in the House of Commons at 12:00 am on 25th October 2018.

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Photo of Alex Cunningham Alex Cunningham Labour, Stockton North 12:00 am, 25th October 2018

If he will hold discussions with the Chancellor of the Exchequer and the Secretary of State for Business, Energy and Industrial Strategy on proposals to introduce a carbon tax to replace the EU emissions trading system in the event that the UK leaves the EU without a deal.

Photo of Chris Heaton-Harris Chris Heaton-Harris The Parliamentary Under-Secretary of State for Exiting the European Union

I thank the hon. Gentleman for his question. The Secretary of State and I meet regularly with ministerial colleagues to discuss a range of EU exit-related matters. As the recently published meeting climate change requirements technical notice made clear, in the unlikely event of no deal the UK Government will initially meet our existing carbon pricing commitments via the tax system, taking effect in 2019.

Photo of Alex Cunningham Alex Cunningham Labour, Stockton North

The carbon tax as outlined would be devastating for companies such as CF Fertilisers in Stockton and energy-intensive industries across the country. Will the level of relief against the proposed carbon tax or any other new arrangement for energy-intensive industries leave exposed industries with no greater financial burden than they have under the EU emissions trading scheme?

Photo of Chris Heaton-Harris Chris Heaton-Harris The Parliamentary Under-Secretary of State for Exiting the European Union

That is a very good question for a Treasury Minister. More details will follow at next week’s Budget, with legislation to follow in the upcoming Finance Bill.

Photo of Gregory Campbell Gregory Campbell Shadow DUP Spokesperson (International Development), Shadow DUP Spokesperson (Cabinet Office)

Some excellent biotechnology research is going on in universities across the UK, including in my constituency. What steps is the Minister taking to ensure that will continue to be the case after 29 March next year?

Photo of Chris Heaton-Harris Chris Heaton-Harris The Parliamentary Under-Secretary of State for Exiting the European Union

The Government are committed to ensure that science and new technologies such as the one the hon. Gentleman mentions are able to continue and thrive in a future relationship, deal or no deal.