£1.7 billion rise in green taxes

12th March, 2008

The Chancellor has announced a further £1.7 billion increase in green taxes at the Budget (by 2010-11). Research by our experts last year revealed that the Government gives back just 2% of what it takes from taxpayers in green taxes as green tax breaks.

Roy Maugham, Tax Partner, at our London office, comments: "This is yet another tax grab under the socially acceptable label of green taxes. If the Government's motives were not mainly financial it would make its green tax policy revenue neutral by balancing green taxes with green tax breaks."

"Over the last 10 years green tax policy has been all stick and very little carrot. Far from stepping out from his predecessor's shadow, Alistair Darling seems to be perpetuating the belief that C02 emissions can be simply taxed away with little thought to the economic consequences."

“This is yet another wasted opportunity to help taxpayers do their bit for the environment. It's all very well punishing polluters, but what about actually encouraging environmentally responsible behaviour and reducing the tax burden at the same time?”

"Taxpayers want to know that taxes raised to cut carbon emissions are recycled into either green investment or used to finance green tax breaks and are not a general tax raising mechanism."

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