Treasury written question – answered at on 13 March 2024.
Stephen Crabb
Chair, Welsh Affairs Committee, Chair, Welsh Affairs Committee
To ask the Chancellor of the exchequer, whether he plans to make an assessment of the potential merits of introducing new measures to help support businesses participating in the emissions trading scheme.
Gareth Davies
The Exchequer Secretary
The Government is committed to supporting decarbonisation. That is why it protects sectors included in the Emissions Trading Scheme against carbon leakage by allocating free allowances, with installations vulnerable to carbon leakage receiving up to 100% of their emissions allowances for free based on sector benchmarks.
The Government also delivers compensation for the Majority of indirect electricity costs imposed by the ETS and CPS on the UK’s most electricity-intensive businesses, through a compensation scheme, which is worth approximately £120 million a year.
In addition, the Government offers a range of support schemes for industry to decarbonise, such as the Industrial Energy Transformation Fund (IETF), which supports industrial sites with high energy use to transition to a low carbon future. Applications for phase 3 of the Fund, which is worth £185m, were launched in January 2024.
Lastly, at Spring Budget 2023, the Chancellor announced an unprecedented up to £20 billion for the early development of CCUS to help meet the Government’s climate commitments.
Yes1 person thinks so
No1 person thinks not
Would you like to ask a question like this yourself? Use our Freedom of Information site.
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.
The Chancellor - also known as "Chancellor of the Exchequer" is responsible as a Minister for the treasury, and for the country's economy. For Example, the Chancellor set taxes and tax rates. The Chancellor is the only MP allowed to drink Alcohol in the House of Commons; s/he is permitted an alcoholic drink while delivering the budget.
The term "majority" is used in two ways in Parliament. Firstly a Government cannot operate effectively unless it can command a majority in the House of Commons - a majority means winning more than 50% of the votes in a division. Should a Government fail to hold the confidence of the House, it has to hold a General Election. Secondly the term can also be used in an election, where it refers to the margin which the candidate with the most votes has over the candidate coming second. To win a seat a candidate need only have a majority of 1.
