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Pre Budget Report - Brown must tackle climate change

Dec 5 2006

Substantial measures - rather than token green gestures - to tackle climate change are urgently needed in tomorrow's Pre Budget Report, Friends of the Earth said today. The environmental campaign group said that green measures widely predicted by the media in tomorrows PBR would do little to cut the UK's carbon dioxide emissions.

Measures anticipated include small rises in Air Passenger Duty and road tax (Vehicle Excise Duty) for gas-guzzling vehicles and an increase in petrol duty in line with inflation.

Friends of the Earth's Economics Campaigner, Dave Timms, said:

"The Pre-Budget Report is a critical test of Gordon Brown's commitment to tackling climate change. The Stern review warned of the catastrophic economic consequences of failing to tackle climate change. Cutting carbon dioxide levels must be at the heart of the Chancellor's report. He must announce substantial environmental initiatives - not token green gestures."

"Green taxes have fallen under Gordon Brown. The Chancellor must take action to cut carbon dioxide emissions by taxing polluting activities, investing in green technology and making it cheaper and easier for people to save energy."

Friends of the Earth is calling on the Chancellor to introduce a number of measures including:

• Council Tax rebates to encourage home insulation;

• Stamp duty rebates for energy efficient homes or improvements within six months of purchase;

• Cutting VAT on DIY energy saving equipment and materials, and on high quality refurbishments;

• Tax incentives and increased grants to boost micro-energy generation

• Substantially increasing VED for gas-guzzling vehicles (up to £2,000 for the most polluting vehicles), and cutting it for more fuel-efficient models;

• Restore the road fuel tax escalator;

• Increase Air Passenger Duty to fund the above and improve public transport.

• Using the money raised from green taxes to help create a £2.4 billion 'green homes fund' to finance Council Tax rebates and micro-generation grants

Press release setting out Friends of the Earth's call for a Green Budget

Detailed briefing on Friends of the Earth's call for a green Pre-Budget Report (PDF)

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