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Pre-budget statement: green with brown edges
9 November 1999
The environment section of the Chancellor's speech contained some welcome measures,but also began a retreat from some key green taxes, under pressure from polluting companies and the roads lobby.
WELCOME: (all proposed by FOE)
.The Chancellor is sticking to the Climate Change Levy, necessary for Britain to meet its obligations under the Kyoto agreement
.He has exempted Combined Heat and Power schemes and renewable energy from the Levy
.He has increased grants available from the Levy for energy efficiency schemes from50 million to 150 million
.He has set up a transport fund to spend above-inflation proceeds of road fuel duty
UNWELCOME
.He has promised a large (80%) discount from the Levy for heavy energy users which sign "energy efficiency agreements"
.He has reduced the total planned tax take from the Levy from 1.7 billion a year to1 billion
.He has abandoned his commitment to a 6% "escalator" for road fuel duty
.He has said that the planning system is to be reformed "to encourage competition"
FOE experts are highly sceptical that the Chancellor can meet his promise to increase the planned CO2 emissions cut produced by the Levy to over 2 million tonnes by 2010 (up from the 1.5 million tonnes). This appears to depend on optimistic assumptions about the effect of the planned "energy efficiency agreements".
Commenting, FOE Executive Director Charles Secrett said:
"Gordon's Brown's statement was not as bad as it could have been: he has stuck to his guns on the principle of the Climate Change Levy, and rightly exempted renewable energy from the new tax. But his statement is not as good as it should have been. There are too many concessions to polluting industries and the roads lobby. The Chancellor's green promises in his last Budget are still there, but today they look a little brown round the edges".
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Published by Friends of the Earth Trust
Last modified: Jul 2008
