Dairy energy savings disappointed at increase in government carbon tax

The dairy sector is disappointed about government plans to cut the rate of relief from the Climate Change Levy from 80% to 65%. The announcement appeared in the small print of yesterday’s Pre Budget Report and stands to cost dairy companies about £1m per year from 1 April, 2011.

Dairy Energy Savings Chairman, Gerry Sweeney said: "The dairy industry has worked hard over the last 10 years to save over 130,000 tonnes of carbon from entering the atmosphere.

"We are therefore disappointed that the Chancellor has decided to reduce relief on the Climate Change Levy from 80% to 65%. As the Copenhagen summit puts the spotlight firmly on climate change it is extraordinary that the UK government is mixing its messages and reducing fiscal incentives for action.

"Dairy foods form a hugely popular part of the nation’s diet, are now responsible for less than 3% of UK emissions. Our industry also remains committed to the raft of ambitious environmental measures set out in the Milk Roadmap."