Archived press release

Green taxes are crucial for a cheaper future

7 July 2011

Commenting on today's report (Thursday 7 July 2011) by MPs urging the Treasury to rebuild trust in green taxation, Friends of the Earth's senior economy campaigner, Simon Bullock said:

"The biggest threat to people's fuel bills is rising world fossil fuel prices, not green taxation.

"Green taxes can help wean us off our fossil fuel addiction and onto clean and affordable alternatives - our current dependency leaves all of us vulnerable to savage future price hikes. 

"Developing the UK's huge green energy potential will also create new jobs and business opportunities and slash the billions of pounds spent on fuel imports.

"The Treasury has consistently failed to play its part in tacking climate change - and its cack-handed approach to green taxation is little surprise.

"David Cameron must show real leadership by pushing the Treasury to lay the foundations for a low-carbon economy and ensure we all benefit from a green, safe future."

ENDS

Notes to Editors:

1. Today's report 'Budget 2011 and environmental taxes', is published by the Environmental Audit Committee.

2. Friends of the Earth agrees with the Committee that there should be a tax shift - increasing environmental taxes, and cutting taxes on jobs. This will be good for the economy as well as the environment.

The environmental campaign charity also noted that:

• Environmental taxes are not the bogeyman. 92 percent of UK taxes are non-environmental and the proportion of environmental taxes has also fallen in the last 10 years.
• On energy, the biggest threat to people's pockets is rising world oil prices - not green policies. It's good for people's pockets and the UK economy to reduce our dependence on fossil fuels.
• According to Government modelling by 2020 high global oil prices would make peoples average fuel bills £600 more expensive than they would be with a low global oil price.
• More needs to be done to help people and businesses go green. Some of the cash from green taxes must be used to help people insulate their homes.
• On transport, the Government must invest more in reducing our dependence on oil - by improving alternatives such as public transport and walking and cycling.

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Published by Friends of the Earth Trust