Bond Pearce

The change announced in the Government's Spending Review is simple: revenues raised by the CRC's annual allowance sales to participants will not be repaid to participants. Instead they will go to the Treasury. In its original format, the CRC was revenue neutral. Unless you are able to pass the cost of purchasing allowances on to others (which is something that landlords are exploring), the CRC now represents an additional financial burden. This announcement radically changes the nature of the CRC.

The Government has also committed to simplifying the CRC and has launched a new consultation exercise. Welcome news but this leaves the CRC in a state of flux.

December 2010
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