A new energy tax proposed in chancellor Gordon Brown’s budget could cost materials producers up to £250m a year.

Building Material Producers president Peter Johnson alerted council members to the impact of the levy at last week’s BMP annual lunch.

Johnson said the BMP shared the government’s concerns about the implications of climate change, but believed more thought should be given to the implementation of its proposed measures before they come into effect in two years’ time.

“There must be adequate, not just 50%, reduction for energy intensive users,” Johnson said.

He told construction minister Nick Raynsford: “We have concerns that the government does not fully understand the damaging impact many of the measures being taken have on our industry.”