Archived press release

Sustainability will be at the heart of the next budget, promises Chancellor

12 December 2007

Friends of the Earth has welcomed today's pledge [1] by Chancellor of the Exchequer, Alistair Darling, that "it is sustainability that will be at the heart of the next budget". But the environmental campaign group, which has been calling for green budgetary action, said that the Chancellor's commitment to protecting the environment would be measured by actions not words.

Earlier this month Government figures revealed that green taxes, as a percentage of overall taxation, fell again in 2006. Since Labour came to power taxes from pollution (as a percentage of total taxes) have fallen from 9.4 per cent to 7.3 per cent [2].

Friends of the Earth's head of economics, Simon Bullock, said

"Previous Government promises to deliver a green budget have been extremely disappointing. We welcome the Chancellor's speech today, but next spring's Budget will be the real test of Mr Darling's green credentials."

"The Budget is a crucial weapon in tackling climate change, encouraging green solutions and delivering a low-carbon economy. The Chancellor must make it cheaper and easier for people to go green. This should include higher taxes on pollution and tax cuts and spending that encourage greener activities. Alistair Darling must put the right systems in place to ensure that cutting the UK's carbon footprint is good for the economy, good for jobs and good for the environment."

Friends of the Earth has repeatedly urged the Government to take green action in its Budgets. Earlier this year [3], our calls included:

Helping householders to cut carbon dioxide emissions by:

• Council tax and Stamp Duty rebates for people installing energy efficiency measures in their home;
• Increasing grants for installing renewable energy technologies;
• A guaranteed premium price (feed-in tariff) for people who sell excess renewable electricity generated from their homes to the National Grid;
• A cut in VAT for refurbishing homes to high environmental standards.

Helping motorists to drive greener cars by:

• Introducing a purchase tax for gas-guzzling vehicles, and lower taxes for low-emission cars;
• Introducing a £1billion a year Carbon Reduction Fund, to invest in greener alternatives to motoring, such as safe routes for children to walk to school, improved rural and urban bus services and world class cycling facilities funded by cuts to the road building budget.

www.hm-treasury.gov.uk/newsroom_and_speeches/press/2007/ ¬
press_143_07.cfm

www.foe.co.uk/resource/press_releases/ ¬
government_still_failing_o0_03122007.html

www.foe.co.uk/resource/press_releases/ ¬
prebudget_report_a_ket_tes_05102007.html

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Published by Friends of the Earth Trust