Archived press release

Pre-budget report - Brown must show bold new approach to economy and environment

21 November 2008

The Government must use its Pre-Budget Report to lift Britain out of recession and end fuel poverty by investing in new green industries and cutting energy waste, says Friends of the Earth.

The green campaign group is urging the Government to announce a range of measures on Monday (24 November 2008) to develop safe, clean sources of renewable power and improve energy efficiency in transport, manufacturing and buildings.

This would create significant new business opportunities that could help start a green industrial revolution, stimulate thousands of new jobs, cut fuel bills, reduce our dependency on fossil fuels and help create a thriving economy - while at the same time helping to tackle climate change.

US President-elect Barack Obama has already signalled his intention to become a world leader on global warming with plans to create five million green collar jobs by investing billions of dollars in a clean energy future.

Friends of the Earth is pushing Gordon Brown to show he is prepared to follow suit by ensuring that the environment is at the heart of his Government's Pre-Budget Report.

Friends of the Earth's executive director, Andy Atkins, said:

"A huge investment in clean, green energy and cutting energy waste is urgently needed to boost our flagging economy and tackle climate change."

"The Government's Pre-Budget Report must be the catalyst for a fresh approach to both the economy and the environment."

"The development of a low carbon economy would create exciting new business opportunities and tens of thousands of green-collar jobs - as well as cutting fuel bills and reducing our reliance on the yo-yoing costs and mounting insecurity of fossil fuels such as oil and gas."

This will be the first PBR since the Government agreed to an 80 per cent cut in greenhouse gases in its Climate Change Bill - which Friends of the Earth led the campaign for. The Government must now take the steps needed to achieve this target.

Notes:

1. Friends of the Earth is calling for the Pre-Budget Report to prioritise support for a low carbon future. Measures announced should include:
• A comprehensive street-by-street home insulation programme across the UK - with priority given to those who can't afford to heat and power their homes. This will cut fuel bills and emissions, create jobs, increase energy security and tackle climate change. This should be kick-started by a one-off £5 billion tax on the windfall profits of energy companies.
• A commitment to a five-fold increase (above those currently proposed by the Government) in investment into renewable energy R&D and deployment. This will attract investment to the UK in the fastest growing global industries and create tens of thousands of jobs in manufacturing, construction, maintenance and administration. It should be paid for by re-directing public spending and the auctioning of carbon emissions permits under the Emissions Trading Scheme.
• A shift of business taxation from employment and to energy waste. An increase in the climate change levy would pay for a cut in employers national insurance contributions. The Carbon Trust recently found that British businesses could save themselves £2.5 billion over the next 12 months - the equivalent of 100,000 staff salaries - if they implemented energy efficiency schemes. Cuts in employers' National Insurance Contributions would help small and medium sized firms in particular.
• Standing firm on plans to cut emissions from the transport sector. This means sticking to its proposals to: increase taxation on gas-guzzling vehicles; increase fuel duty in April; and introduce Aviation Duty - which will also cover freight and 'transfer' passengers.
• Commit the Government to staying within the UK's new carbon budget - which is due to be announced in spring 2009 - entirely through strategic low-carbon investment and greater energy efficiency in the UK economy. Importing credits from abroad will result in the UK economy being left behind other nations and missing out on the economic benefits of investment and jobs.

2. In a key-note foreign affairs speech earlier this month, Gordon Brown indicated that he believed that a new approach was needed to both the economy and the environment. He said "we must use the imperative to act for our future prosperity through the transition to a low carbon economy and reduced oil dependency as a route to creating jobs and economic opportunity for our peoples today." See: http://www.number10.gov.uk/Page17419

3. This month's Pre-Budget Report is the first since the Government committed itself to a new law requiring the UK to cut its greenhouse gas emissions by 80 per cent by 2050, and the first since the inevitability of the forthcoming recession.

4. The successful bid for a climate change law was led by Friends of the Earth through The Big Ask campaign.

5. Friends of the Earth is a member of the Stop Climate Chaos Coalition, the UK's largest group of people dedicated to action on climate change.

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