Shadow chancellor Michael Portillo has launched the Conservative Party policy document Keeping Britain Competitive, and vowed to scrap the planned Climate Change Levy (CCL) if they win the next election.


Portillo issued a statement saying: The Labour government is actually undermining the competitiveness of the UK economy. He added: Conservatives understand the concerns of business, and, unlike this government, we are committed to address them.


The new tax is due to come into effect in April 2001, and was unveiled as a means of meeting emissions reduction targets agreed at Kyoto in 1997, and is expected to raise over 1bn.


The Paper Federation negotiated an 80% discount in the CCL rate with the government earlier this year, following its offer to reduce the industrys energy consumption by over 40% between 1999 and 2010.


Bryan Bateman, director of special projects at the Paper Federation, said: We have a broadly acceptable formula, but who is happy with additional taxation?


Friends of the Earth (FOE) has spoken out in condemnation of Portillos announcement, with climate campaigner Mark Johnston, saying: The Tories are making a dangerous and ill-informed U-turn on the environment. Scrapping the levy would blow a huge hole in the UKs programme to cut emissions of climate changing gases.


Story by Kevin May