George Osborne said he would freeze the carbon tax charged to the biggest CO2 emitters, such as power plants and heavy manufacturers, at £18 a tonne for ten years from 2016, instead of hiking it to well over £30 over the period.
The resulting energy bill savings would leave the average manufacturing company £50,000 better off a year, while the average household would save £15.
Mr Osborne also said he would give a further £1bn to energy-intensive firms to compensate them for green levies on their bills.
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