Panel product manufacturers are feeling the impact of the climate change levy (CCL), according to Nexfor Ltd.
The company’s comments follow the Construcion Products Association’s (CPA) latest state of trade survey which says higher tax, especially the CCL and Aggregates Tax, are undermining industry efforts to raise productivity and control costs.
Steve Roebuck, Nexfor’s director of health, safety and environmental affairs, said he agreed with the CPA’s findings, pointing out that the CCL cost the company in the region of £300,000 a year. And that is after securing 80% exemption by agreeing with the government to reduce energy use over the next 10 years.
He said: “The real problem we have is no matter how efficient we are, we still have to pay the 20% tax. And the panel board industry is a very energy intensive process.”
But joinery manufacturers are more concerned about the impact of national insurance increases next year.
Chairman of Howarth Timber Group Ltd Nick Howarth described the CCL as “not a big factor” for joinery companies because they used relatively small amounts of power. However, he said the 1% increase on company national insurance contributions would be more harmful because it was such a labour-intensive industry.
