Alan Whitehead

Labour Party | Southampton Test

Whitehead's energy efficiency campaign pays off

28 April 2009

Chancellor awards tax break in Budget.

Dr Alan Whitehead, Labour MP for Southampton Test, last week celebrated an exemption from the Climate Change Levy for Combined Heat and Power (CHP) technology, which was granted by the Chancellor in the 2009 Budget.

CHP is the generation of heat and power (usually electricity) in a single process, and is a highly efficient way to reduce carbon emissions from both fossil and renewable fuels.

The Climate Change Levy requires companies to pay a tax on the energy they use but last week's announcement will exempt energy produced via Combined Heat and Power Technology due to its ability to deliver significantly lower carbon emissions. This will encourage companies both to use and to invest in this impressive technology.

In his statement Chancellor Alistair Darling said:

"To encourage the use of Combined Heat and Power technology, I will exempt those projects from the Climate Change Levy from 2013 – bringing forward over £2.5 billion in investment."

Speaking from Westminster Dr Whitehead, who has been a long-term campaigner for investment in CHP said:

"I am delighted that the hard work of CHP campaigners has paid off and that the government has committed to encouraging investment in this energy efficient technology. These measures will bring forward £2.5 billion of future investment in CHP, which will reduce UK carbon emissions by 3.2 million tonnes of carbon dioxide – a serious step towards reaching the UK's carbon reduction targets. This investment will also create jobs in emerging technologies which now have a more secure future thanks to yesterday's announcement."

Dr Whitehead added:

"As the prime minister repeated just this month, our way out of recession will be a low carbon route. I am extremely pleased that Budget 2009 reflects this."