The new Climate Change Levy on industry has been 'badly designed' and will endanger the future of manufacturers in the region.

That was the verdict delivered by the Director of the Engineering Employers' Federation (EEF) in Yorkshire and Humberside, Ian Hughes, on the Government's new 'energy tax'.

A report from Ernst & Young by the EEF says nearly 2,300 firms, employing around 1.3 million people, will face net costs totalling £100 million from the levy. Mr Hughes said: "Sadly, and inexplicably, the Treasury has refused to accept alternative proposals which would bring benefit to the environment."