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Environmental Levies To Cost UK £65 Billion In Next Six Years

November 26, 2016

By Paul Homewood 


Following last week’s Autumn Statement from the Chancellor, the OBR have now published their latest Economic and Fiscal Outlook.

We can therefore update the latest projections of Environmental Levies and other costs associated with the Climate Change Act. 



2.7 Environmental levies

£ billion

Outturn Forecast

2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Carbon reduction commitment 0.7 0.7 0.6 0.5 0.5 0.0 0.0
Warm home discount1 0.0 0.3 0.3 0.3 0.3 0.4 0.4
Feed-in tariffs1 0.0 1.3 1.3 1.4 1.4 1.5 1.5
Renewables obligation 3.9 4.6 5.4 6.2 6.5 6.6 6.8
Contracts for difference 0.0 0.1 0.7 1.3 1.9 2.6 3.1
Capacity market 0.0 0.0 1.4 1.7 1.0 1.1 1.2
Environmental levies 4.6 7.0 9.7 11.4 11.7 12.2 13.0
Memo: Expenditure on renewable heat incentive (RHI) 0.4 0.6 0.7 0.8 1.0 1.1 1.2
Note: The ‘Environmental levies’ line above is consistent with the ‘Environmental levies’ line in Table 4.6 of the November 2016 Economic and fiscal outlook.
1 The ONS have yet to include Warm Home Discount and Feed-in Tariffs in their outturn numbers.


So, by 2021, these will be costing the UK £13bn a year, equivalent to about £500 per household.

The total cost for the next six years is £65 billion. Given the long running controversy over HS2, the proposed high speed rail link estimated to cost £56bn, one wonders why there is so little public debate about the much greater costs of the Climate Change Act, which are likely to have risen near to £200bn by the time HS2 is up and running in 2032.


In addition to the levies, we also have the costs of the Carbon Floor Price and Climate Change Levy, which will add another £12.4bn by 2021/22.


2.13 Climate Change Levy receipts

£ billion


2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
CCL Receipts 1.9 1.9 2.0 2.2 2.2 2.2
of which:

CCL Receipts (ex Carbon Price Floor) 1.0 0.9 1.0 1.4 1.5 1.5
CCL Receipts – Carbon Price Floor 0.9 1.0 1.0 0.8 0.7 0.7



The cost may well be higher than the OBR forecast, as they also assume that oil prices will quickly rise to over $60 per barrel. If prices remain as subdued as they projected in March, this will likely have a knock on effect by keeping wholesale electricity prices low.

If this is the case, the cost of CfDs will be higher than anticipated.  





One day, the media might wake up to the horrendous cost of Ed Miliband’s folly.

  1. Joe Public permalink
    November 26, 2016 1:27 pm

    Can we blame #Brexit or #Trump for this? Please.

  2. November 26, 2016 1:31 pm

    Add in the £!2billion (I believe) of foreign aid, which goes to corrupt regimes and to help fight climate change, and you can see why the country is in a complete mess with massive debts and in a rapid decline.

  3. TinyCO2 permalink
    November 26, 2016 1:49 pm

    Those who are bad with money are often very generous, giving money away to a coterie of fair weather friends. Why bother to spend borrowed money wisely, when they’ve already blown their own? How embarassing to live in a country that behaves in the same way.

  4. A C Osborn permalink
    November 26, 2016 2:57 pm

    Paul, off topic.
    Can you understand why both Arctic & Antarctic Sea Ice should both be so low at the same time.
    I know they are talking about the Arctic hotspot, but it is still below freezing in that area and nobody has mentioned extra heat in the Antarctic.
    It looks suspiciuosly like a “Fix” or Sattelite camera/probe error for them both to be affected so much.

    This has been going on a long time now, is there an alternative source for the data?.

    • AlecM permalink
      November 26, 2016 4:19 pm

      Antarctic sea ice is the same now as it was a century ago, proven by the Scott and Shackleton measurements, also whalers.

      Arctic sea ice is 26% less than the peak of the satellite era. total sea ice in the satellite era is roughly constant.

      • Gerry, England permalink
        November 27, 2016 10:58 am

        It is not so much the air temperature but the sea temperature that affects Arctic ice and there have been periods of warm water flowing into the Arctic. Since we entered the period of a solar minimum and a Little Ice Age the path of the jetstream has changed from zonal to meridional. The huge meanders north and south can take warmer air up into the Arctic. There is some evidence to suggest that the Arctic ice extent in September is starting to increase and if that is the case then the Antarctic may well decrease since they appear to be asynchronous. Whatever lies ahead will be interesting as this will be the first solar minimum with recorded data.

  5. Bitter&twisted permalink
    November 26, 2016 3:33 pm

    Let’s hope Trump stamps on AGW, the rest of the World might wake up to the fact that carbon taxes are economic suicide.

  6. November 26, 2016 4:31 pm

    How much do China, India and Germany pay in Environmetal levies???

  7. TerryL permalink
    November 26, 2016 5:11 pm

    I started reading the comments and I was like, “Wow”! In Canada we are having the “exact” same things! Our PM is giving millions/Billions to foreign countries, but yet our economy continues to suffer. Trudeau desperately wants a seat with the UN, so everything he does is for his own Narcissistic Ego! He also wants to impose a Carbon Tax which will have no impact, except negatively on our economy and Canadians. I swear he is trying to destroy our Middle Class, which every sensible person knows is “the Backbone of the Country”. You take away the Middle Class and you’re left with “the very rich and the very poor” – basically 3rd world status. His insistence on bringing in “thousands of Muslims” is not helping. I saw a video just the other day of a School Board meeting in Mississauga, Ontario; they started with the singing of “O Canada”, for which “all Canadians” stand. Nope, the Muslims just sat there. These people will never assimilate into Western Culture. Anyways, I feel your pain…

    • catweazle666 permalink
      November 26, 2016 7:23 pm

      You take away the Middle Class and you’re left with “the very rich and the very poor”

      Make that the powerful and the powerless.

      Back in the 1960s I visited the Soviet Union. Around that time there were more card-carrying Communist Party members in the UK than there were in the USSR.

      As one of the citizens remarked, “it is easy to tell the Communists, they’re the ones in the big black cars”. It wasn’t that they were rich, it was that they had absolute power.

      That is the aim.

      As to Islam, it is entirely incompatible with 21st century socially liberal democratic civilisation.

  8. November 26, 2016 7:27 pm

    Reblogged this on Wolsten.

  9. John F. Hultquist permalink
    November 26, 2016 9:59 pm

    In sports this is call an “own goal.”
    It is really wanton wealth destruction.
    Barack Obama and the US Congress did this with the “cash for clunkers” program. Therein good autos were destroyed and not available in the used market.

  10. CheshireRed permalink
    November 26, 2016 10:55 pm

    It goes without saying that Chris Booker has been warning of the truly insane costs of Ed Milibands Act of Lunacy from day one, ensuring Miliband has been THE most financially destructive minister in UK history. The man is an absolute weapon and his CC Act has achieved literally nothing constructive whatsoever. A complete fool. Please Donald, kill climate change hysteria.

    • Gerry, England permalink
      November 27, 2016 10:52 am

      I think the blame needs to spread around and not just on Miliband. The Tories had the cheek to try and call it Labour’s Climate Change Act but the commons vote had all but about 3 MPs – Tories – not voting in favour.

  11. golf charlie permalink
    November 27, 2016 2:16 am

    I think Wind Turbines ought to be known as Miliband’s Follies. The substantial forts and defences around Portsmouth and the South East became known as Palmerston’s Follies (see Wikipedia) as they were designed to fight n enemy that wasn’t there.

    • roger permalink
      November 27, 2016 9:03 am

      Double Sports period on Wednesday afternoon at Portsmouth Northern Grammar School in the early 1950’s involved a cross country run from Alexandra Park in the north of Portsea Island, up Portsdown hill to Fort Widley with it’s commanding views over the natural harbour laid out below, and back down again in time for a Latin period before the bell at 4.05pm.
      Oh yes, I remember it well!!
      Especially the bursting lungs and the overwhelming dread on Wednesday awakenings.

  12. Ian Wilson permalink
    November 27, 2016 9:51 am

    Off topic (can’t find a ‘contact’ facility on the site) but might be worth listening on the iplayer to Radio 4’s ‘More or Less’ just after the Sunday 5.00 am news (perhaps not peak listening time)
    It’s a short slot which challenges dubious statistics. Today they tackled the recent claim that renewables produce more power than coal.
    For once, the BBC showed balance, explaining the difference between capacity and achievement. They quoted 30% of capacity for renewables and 50% for coal, citing that coal power stations need maintenance and that their output is not always needed. On this last point they didn’t mention that it is political meddling which often causes coal capacity to be redundant, but no doubt they are restrained in a five minute slot.
    8 out of 10 for the BBC?


  1. On energy policy, our politicians are leading us into darkness

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