The chancellor announced a range of measures to help energy-intensive manufacturers, including steel makers, in the Budget today.
He said he would cap the carbon price support rate to £18 per tonne of carbon dioxide from 2016/17 for the rest of the decade.
George Osborne told Parliament that the move would save a mid-sized manufacturer almost £50,000 a year.
He said there would be an extension to the compensation for energy intensive manufacturers for four more years to 2019/20.
There would also be an extra £1bn of compensation to reduce the impact of green levies on the bills of energy-intensive manufacturers
Electricity from combined heat and power plants would be protected from the carbon price floor.
Mr Osborne also said the Budget would provide a £200m challenge fund in 2014/15 that councils could bid for to repair potholes.
He also announced £140m to repair flood defences. The Budget document said £100m would be spent in 2014/15 and £70m in 2015/16.