Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he plans to phase out the Carbon Price Support Cap; and if he will make a statement.

At Spring Budget 2020, the Government announced that the Carbon Price Support rate would be frozen at £18/tCO2 in 2021/22. The Carbon Price Support rate is recognised as one of the main drivers of the significant decline in electricity sector emissions and coal generation in Great Britain over recent years, and it continues to support the decarbonisation of electricity across the country and the Government’s Net Zero commitment.

HM Treasury keeps all taxes under review, and announcements on the future rate of the Carbon Price will be made as appropriate at fiscal events.