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15 Mar 1998
Friends of the Earth today publishes its List of Runners and Riders for a green Budget,together with a form forecast of the Chancellor's likely actions.FOE's top green tipsters are warning that the Chancellor may duck out
on previous Labour promises of a green Budget next Tuesday. The warning
is based on meetings with Treasury ministers and contacts with Treasury
and Department of Environment officials and advisers. FOE Executive Director
Charles Secrett has commented that if there is no significant green Budget
next Tuesday "the Chancellor will not be forgiven by the environmental
movement".
TUESDAY 3.30:WESTMINSTER
THE RED BOX HURDLES Going: Sticky
Runners and Riders
Raising the road fuel price escalator
| FORECAST: | a possible increase from 6% to 7% |
| ODDS ON ACTION: | 7-4 on |
Ending mileage banding and 'free fuel' tax concessions for company cars
| FORECAST: | an end to mileage banding |
| ODDS ON ACTION: | 3-1 on |
Reducing Tax on cleaner fuels
| FORECAST: | a possible reduction in tax on liquified natural gas and liquified petroleum gas |
| ODDS ON ACTION: | 7-4 on |
Tax private non-residential parking
| FORECAST: | no progress before Transport White Paper |
| ODDS ON ACTION: | 2-1 against |
Variable Vehicle Excise Duty (based on emissions and fuel efficiency)
| FORECAST: | no progress before Transport White Paper |
| ODDS ON ACTION: | 2-1 against |
Cutting VAT on energy saving materials
| FORECAST: |
Chancellor to retreat on limited November 1997 promise
to cut VAT for energy saving materials on Government and Council
grant schemes. Parts of the Home Energy Efficiency Scheme and
Council schemes may be excluded.
|
| ODDS ON ACTION: | 4-1 against implementing full promise |
Cut back in the roads programme and increase in public sector funding
for bus-use, cycling and walking in congested urban areas.
| FORECAST: | no progress before Transport White Paper |
| ODDS ON ACTION: | 8-1 against |
Water Pollution Charges
| FORECAST: | failures by the Department of Environment, Transport and the Regions make Budget action unlikely |
| ODDS ON ACTION: | 10-1 against (but possible commitment to further review) |
Aggregates Tax
| FORECAST: | failures by DETR make Budget action unlikely |
| ODDS ON ACTION: | arguments between owners and stewards make setting a price difficult (but possible commitment to further review) |
Introduce charges on pesticides and chemical fertilizers
| FORECAST | action unlikely |
| ODDS ON ACTION: | 12-1 against |
Increase in the waste ('landfill') tax and extension to
incineration
| FORECAST: | action unlikely |
| ODDS ON ACTION: | 15-1 against (but possible commitment to further review) |
Cut in tax breaks for the oil and gas industry
| FORECAST: | action unlikely |
| ODDS ON ACTION: | 30-1 against |
Last week, FOE published its own green Budget package, tested on the
authoritative Cambridge Econometrics MDM-E3 (economy - energy - environment)
model. It showed that green tax package could raise up to 28 billion
a year by the year 2010, and could be spent on improved public transport,
home energy efficiency, and reductions in employers'National Insurance
contributions. The result could be to create almost 400,000 new jobs by
2010, and contribute a 7% cut in CO2 emissions towards the Government's
20% target.
Charles Secrett, Director of FOE said today:
"Green Taxation was supposed to be a real runner this year. Instead,
it seems to have been replaced at the last minute by Weasel Words. It's
time for the Chancellor to stop hedging his bets. It is no good
promising yet more consultation and review.It is no good asking us to
wait until John Prescott finally publishes his White Paper.Frankly the
Chancellor's previous form is already poor. If the green Budget is nobbled
yet again next Tuesday, he will never be forgiven by the environmental
movement. FOE is determined to ginger Gordon Brown up."
FOE's proposed Budget package includes a carbon/nuclear tax
levied on commerce and industry rising to $13 per barrel of oil equivalent
by 2010, a staged increase in landfill tax,a tax on waste disposal by
incineration, a road fuel duty escalator of 9%, a tax on primary
aggregate production rising to 13 per tonne by 2010, and removal of company
car perks.
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
Media team
