Treasury written question – answered at on 17 December 2018.
Nicholas Dakin
Opposition Whip (Commons)
To ask the Chancellor of the exchequer, if he will make it his policy to reduce the rate of the UK carbon tax.
Robert Jenrick
The Exchequer Secretary
The Carbon Price Support is a tax on fossil fuels used in power generation in Great Britain which provides a ‘top-up’ to the EU Emissions Trading System (ETS) to form the Total Carbon Price.
As announced at Budget 2018, Carbon Price Support rates will be frozen at £18/tCO2 in 2020-21. From 2021-22, the government will seek to lower CPS rates if the Total Carbon Price remains high.
The government is committed to meeting its climate change commitments including reducing carbon emissions by at least 80% of 1990 levels by 2050, and meeting interim carbon budgets, whilst also ensuring the continued competitiveness of UK businesses. The tax system is an important part of this.
Yes2 people think so
No1 person thinks not
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The chancellor of the exchequer is the government's chief financial minister and as such is responsible for raising government revenue through taxation or borrowing and for controlling overall government spending.
The chancellor's plans for the economy are delivered to the House of Commons every year in the Budget speech.
The chancellor is the most senior figure at the Treasury, even though the prime minister holds an additional title of 'First Lord of the Treasury'. He normally resides at Number 11 Downing Street.
