asked Her Majesty's Government:

What has been the impact of the climate change levy on levels of employment in manufacturing industries; and [HL2645]

What is the relationship between the climate change levy and outsourcing of manufacturing jobs from the United Kingdom. [HL2646]

The climate change levy was introduced in 2001 as part of a package of measures to encourage business energy efficiency. The package consists of:

the climate change levy;

climate change agreements which entitle eligible firms to pay an 80 per cent discounted rate of the levy in return for emissions reduction targets agreed with Government;

a 0.3 percentage point cut in employers’ national insurance contributions;

enhanced capital allowances for energy-efficient products; and

the Carbon Trust,

Independent modelling from Cambridge Econometrics suggests that the CCL package has led to a reduction in costs for business as a whole. Because the package lowers costs for business, Cambridge Econometrics suggests the package will lead to a marginal increase in employment in the manufacturing sector.