The British Metals Recycling Association (BMRA), in a press release issued by the association, has officially protested the United Kingdom’s announcement by the government to use Carbon Reduction Commitment (CRC) Energy Efficiency Scheme to support public finances.
The move is part of the British Government’s comprehensive spending review.
BMRA’s statement claims that revenue for the scheme was to be used to recognize reductions in carbon emissions. The BMRA states that the change effectively makes the scheme an additional tax on business that will raise £1 billion (US$1.585 billion) per year and remove an incentive to improving energy efficiency.
The BMRA adds that the move will have a significant impact on scrap metal recyclers using large plants and equipment for processing recyclables. It is also expected that the reach of the scheme will be extended to other users in the future.
“This unexpected direct tax on small- and medium-sized businesses in manufacturing is ill thought through and cuts across the government’s stated objective of driving growth through manufacturing and green industries and will have serious impact on the businesses at the forefront of developing new processes and technologies, which are required to achieve the government’s zero waste objectives,” says Ian Hetherington, BMRA director general.