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Treasury under fire on green taxes - commons committee says government all talk and no action

10 March 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.


If you're a journalist looking for press information please contact the Friends of the Earth media team on 020 7566 1649.

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Published by Friends of the Earth Trust

 

 

Last modified: Jul 2008