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Pre-budget statement: two steps forward one step back
27 November 2002
The Chancellor announced two environmental measures in his statement.
- Landfill tax will increase by £3 a ton from 2005-6. This is three times the current escalator. But the waste industry has said that a total tax figure of £30 a ton is required to have a serious effect and the Chancellor agreed. The current level of tax for active waste is £13 a ton. Therefore, it will take until 2009 before the Treasury gets there. This is a step in the right direction but inadequate.
Supplementary information from the Treasury shows reform of the Landfill Tax Credit Scheme will provide £100 million from 2003 for "sustainable waste management" - which could be used to support recycling etc. This is no more than half of what FOE believes is needed, but is a significant step in the right direction.
- Reducing tax on bioethanol by 20p per litre. This is welcome.
While the Chancellor announced no increased support for renewable energy sources, he did cut tax on North Sea oil. This break is worth £170 million in 2003/4.
Friends of the Earth tax and budget campaigner Tim Jenkins said:
"The Chancellor's moves on Landfill Tax and bioethanol are welcome - even if they do not go far or fast enough. But it seems that he gave as much away in tax breaks on North Sea oil as he raised on green taxation. The Treasury has got the point about some green tax and spend measures, but this is still not a joined-up green Budget."
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Published by Friends of the Earth Trust
Last modified: Jun 2008
