The Climate Change Levy has put the paper industry under further pressure by raising the prices of materials and fuel by almost 1% over the past month.


"The Paper Federation has consistently argued that the CCL would impact on energy-intensive industries such as ours," said director of business affairs Graham Barnard.


"We have also pointed out that the governments claim of fiscal neutrality is a myth, and that the levy favours the labour-intensive industries."


Barnard also said the government had not fully understood the impact the CCL would have on competitiveness for the UK until it was too late. "The Paper Federation recognises that without our prior negotiations, the paper industry would be in a much worse state than it is at present."