Oral Answers to Questions

Alex Cunningham Excerpts

Thursday 25th October 2018 Commons Chamber

[Suella Braverman]

No.

[Alex Cunningham (Stockton North) (Lab)]

5. 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.

[The Parliamentary Under-Secretary of State for Exiting the European Union (Chris Heaton-Harris)]

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.

[Alex Cunningham]

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?

[Chris Heaton-Harris]

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.