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TREASURY UNDER FIRE ON GREEN TAXES Commons Committee Says Government All Talk and No Action
10 Mar 1998
Friends of the Earth, Britain's leading environmental pressure group, has welcomed the first report of the new House of Commons Environmental Audit Committee. The report is sharply critical of the Labour Government's actions on green taxation.
The Committee complains that the Treasury's Pre-Budget report:
- "did not contain any evidence of a strategic approach in line
with the Government's statement of intent on environmental taxation"
- did not support the "rhetoric on the integration of economic and
environmental considerations" with "the provision of any information
on the impact of economic activity on the environment".
The Committee also recommends that the Government consider key Friends
of the Earth budget demands, including
- reducing VAT on energy saving materials (after "pursuing negotiations
within the European Union as a matter of urgency")
- a tax on water pollution from pesticides
- an increase in landfill tax
- an aggregates tax
- differential vehicle excise duty, based on engine size and fuel efficiency,
an increase in the road fuel duty escalator, and ending tax breaks on
company cars
- a progressive increase in the proportion of revenue yield from environmental
taxes, allowing a reduction in tax on goods (FOE advocates cuts in National
Insurance).
Commenting, FOE Executive Director Charles Secrett said:
"This excellent report vindicates Friends of the Earth's green Budget
demands in almost every respect. It also points out that the Government's
green rhetoric is just not being backed by action,and by Treasury action
in particular. The Government is now defending the last shreds of its
credibility as far the environmental movement is concerned. The Budget
next week must be green.There can be no second chances."
PLEASE NOTE
Friends of the Earth will provide spokespeople on green Budget issues before or on Budget day. Radio interviews can be recorded or conducted live on our ISDN facility.
Contact details:
Friends of the Earth
26-28 Underwood St.
LONDON
N1 7JQ
Tel: 020 7490 1555
Fax: 020 7490 0881
Web: www.foe.co.uk/feedback.html