MPs call for green tax reform welcomed

A new Treasury Committee report on tackling climate change, published today (Tuesday 5 February), has been welcomed by Friends of the Earth.

The report, Climate Change and the Stern Review: the implications for Treasury policy;

  • Criticises the Government's timidity on environmental taxation

  • Says the use of economic tools such as environmental taxes and permit trading schemes are a cost-effective way to cut emissions

  • Calls for the creation of a ministerial post to co-ordinate the government's approach to climate change

Friends of the Earth's economics co-ordinator, Simon Bullock, said:

“This report is extremely welcome. The science and the evidence of economic impacts from climate change demand that the Chancellor greens tax policy over the next five years. He must start by putting forward a comprehensive package of measures for tackling climate change and protecting the environment in next month's Budget.”

“The Committee is right to call for a for climate change champion at the heart of Government. The reality is that while we have had a succession of Environment Ministers who have understood the urgency of tackling climate change, they have been stuck in their department while key decisions on transport, energy housing and green taxation have been taken elsewhere. Of course the most significant champions would be the Prime Minister and his Chancellor. “

Friends of the Earth is calling on the Chancellor to

  • Use his Budget in March to demonstrate his commitment to Environmental Tax reform, announcing rises in pollution taxes linked to cuts in taxes on jobs and income.

  • Introduce measures in March that substantially cut UK carbon dioxide emissions.

  • Introduce a one-off windfall tax on the excess profits of electricity and oil companies, used to create a climate change super-fund to tackle fuel poverty

  • Introduce a Stamp Duty Rebate and a Council Tax Rebate for people wanting to install energy efficiency measures in their homes

Friends of the Earth is also calling for the Climate Change Bill to put duties on the Prime Minister to meet the Government targets and make annual reports. The Bill as currently drafted places this duty on the Secretary of State for the Environment.