British manufacturing has been hit by a "burden" of over £100 million since the controversial climate change levy was introduced, it is claimed today.

The claim comes from the Engineering Employers Federation (EEF) which on Monday called on the government to shelve the tax which is hitting a sector already under intense pressure from the global economic slowdown.

The federation claims that the manufacturing sector is bearing a disproportionate amount of the levy.

The EEF's director general is suggesting that the government scale down the levy in favour of alternative plans to cut down on harmful CO2 emmissions.

"Our figures prove that the government was wrong when saying the levy would not impact on competitiveness because it is imposing an ever greater burden on manufacturing at a time when it is already in recession. Our alternative proposals are giving the government a win-win situation by achieving a balance between reducing carbon emissions and promoting growth in employment and output," said Temple.

The CBI chief Digby Jones is backing the EEF's call. "These findings back up official findings earlier in the summer indicating that the levy was putting major upward pressure on the viability of manufacturing and agricultural businesses," he said.

"The government should be thinking more actively about making it easier, not harder, for them to compete. The climate change levy is fast becoming a tax on jobs at precisely the time when government should be doing everything it can to keep people in work."