Policy & Politics Blog

23 March 2011

Budget 2011: Ducks and cuckoos

A shocking Budget for the environment today. George Osborne found £10 billion from increasing the tax on North Sea oil profits, but spent it ALL on cutting fuel duty for motorists.

Less than a month ago this Government was saying the UK must get off its oil addiction. Yet today Mr Osborne spends every penny of that huge sum on increasing our oil addiction. Nothing on improving public transport or walking and cycling conditions. No tax breaks or grants for take-up of teleconferencing, car-sharing clubs or electric vehicles. Not even reversing his October 8p hike in bus fuel duty, due to come in next year, which will lead to higher prices and cancelled services. No, all of this colossal sum goes to increasing our addiction to oil. It's difficult to think of a more short-term decision he could have taken.

The Chancellor also announced a Green Investment Bank. The critical point with this bank is whether it can borrow. The Prime Minister said it would be a proper Bank. His cabinet colleague Chris Huhne has been quite clear: "Ducks quack and Banks borrow and lend". Well, it can lend, but not til 2015/2016 at the earliest. This is a huge blow to plans for speedy green investment, creating the jobs and businesses the UK needs. Mr Osborne has given Mr Cameron, Clegg and Huhne their duck, but he's broken its wings first.

Back in 2009 George said: "Under a Conservative government, the Treasury will no longer be the cuckoo in the Whitehall nest when it comes to climate change. If I become Chancellor, the Treasury will become a green ally, not a foe".

He's maimed the duck, and become the cuckoo.

Posted by Simon Bullock | 23 Mar 2011 |