Archived press release

Go to our press releases area for our current press releases.

Green budget nobbled? - FOE opens book on next Tuesday's Runners and Riders

15 March 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.

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

Published by Friends of the Earth Trust

Last modified: Jul 2008