Video Report: BDO expert on the PBR as Yorkshire hails carbon capture move
CAMPAIGNERS fighting to bring carbon capture projects to Yorkshire have described Chancellor Alistair Darling’s announcement that the government will fund four demonstration projects as a “huge boost”.
Yorkshire, which is the UK’s largest carbom emitting region, is aiming to host a pioneering commercial demonstration of Carbon Capture and Storage (CCS) technology, which involves capturing CO2 emitted at source and then storing it safely offshore.
The development of a CCS pipeline in the region could save 60m tonnes of CO2 every year by 2030.
CO2Sense Yorkshire, the business development company owned by Yorkshire Forward, is working with a range of industry partners to develop the strategic case for a regionwide CO2 transport network to serve all large emitters in Yorkshire and Humber.
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Stephen Brown, director for Carbon Capture & Storage, said: “The Government’s announcement today is obviously a huge boost to those of us who hope to develop CCS in Yorkshire and Humber.”
It is hoped two of the four CCS demonstration projects could come to the region, which could create thousands of new jobs.
Commentators have said Mr Darling didn’t address the key issue of how he was going to cut the national deficit in the PBR by half over the next four years – instead outlining plans to continue spending until 2011, claimed his tax hikes would hit the middle classes and that SMEs would be adversely affected.
Around 10m people earning more than £20,000 will face National Insurance rises in 2011, bankers and public sector workers were also hit with a one-off 50% levy on bank bonuses over £25,000 and two-year cap on pay rises for public workers.
Other measures announced will see VAT return to 17.5% from January 1, the Enterprise Finance Guarantee loan scheme extended for another 12 months, £160m in investment in low-carbon and renewable projects and the basic state pension.
Mr Darling admitted the economy was forecast to shrink 4.75% in 2009, worse than the 3.5% forecast in April and that forecasted borrowing would be £178bn in 2009, £3bn higher than predicted in April.
However, he said the estimated public cost of bank bailouts would be cut from £50bn to £10bn.
Further announcements were made to cut carbon emissions and tax landline phones to pay for superfast broadband.
Andrew Palmer, CBI director for Yorkshire and the Humber, said: “There were two tests for this Pre-Budget report. First, would it increase the credibility of Government plans to restore the public finances? Second, would it be a platform for job creation and economic growth? The Government has failed on both counts.
“The Chancellor has made a serious mistake imposing an extra jobs tax at a time when the economic recovery will still be fragile. Increasing National Insurance contributions will hold back job creation and growth.
“He has also missed the opportunity to increase the UK’s credibility by reducing the public deficit earlier. The Government still needs to set out fuller plans on how it will reduce public expenditure.”
The Forum of Private Business believes that raising NICs by another 0.5% in 2011 is grossly unfair and will leave small employers and their employees paying the price for mistakes made by global financial institutions.
FPB chief executive Phil Orford said: “This tax hike will come at the worst possible time for small firms – just at the point where, hopefully, the economy will be in recovery and they will be looking into taking on new staff.”
Nick Pontone, director of policy at Yorkshire and Humber Chambers of Commerce, said: “This Pre-Budget Report will be quickly forgotten because it has simply delayed the big decisions until after the general election. We wanted to see a credible plan both for future economic growth and to tackle the eye watering deficit in the public finances.”
