Chris Monk
Well-known member
Miliband reveals 'green tax package'
By PA
Last Updated: 1:39am GMT 30/10/2006
The new taxes that could be coming your way
The leaked document
Environment Secretary David Miliband has drawn up a wide-ranging package of green taxes designed to change people's behaviour in a bid to offset global warming.
Mr Miliband said road-pricing should "reflect the full environmental impact of the journey".
His proposals, in a leaked letter to Gordon Brown, include hikes on fuel and air passenger duty as well as increased road tax for drivers of the most polluting vehicles.
The leak comes ahead of a report, commissioned by the Chancellor, which will warn of the enormous cost of climate change unless action is taken immediately.
In his letter, seen by the Mail on Sunday, Mr Miliband also demands moves to curb greenhouse gas emissions and says that the tax system is a vital tool.
"Market-based instruments, including taxes, need to play a substantial role," he writes.
"As our understandings of climate change increases, it is clear more needs to be done."
His suggestions include a mechanism to take away from motorists the money they save on fuel when oil prices go down.
This would "maintain pressure on the cost of motoring without individual announcements on fuel duty needing to be made", he says.
Mr Miliband sets out the need to explore a "substantial increase" in road tax for higher-emission vehicles to encourage people to take cars which pollute less.
He proposes that road-pricing should "reflect the full environmental impact of the journey made".
"This would encourage a shift away from private to public transport," the Environment Secretary adds.
He also points out that air travel is currently "lightly taxed". He goes on: "Raising air passenger duty by £5 would raise £400 million a year.
"There is also a case for making flights subject to VAT either on domestic flights, or better still, for all EU flights."
Mr Miliband also warns that lightbulb prices do not reflect their true environmental cost, meaning that people tend not to buy the most efficient bulbs.
"We need to address this market failure through a system of product charges, fiscal instruments and non-tax alternatives, in particular consumer electronics and lighting," he says.
A spokesperson for the Department for the Environment, Food and Rural Affairs refused to comment on the leak.
The proposals follow the Tories' commitment this month to raise green levies to fund tax cuts for families.
But shadow environment secretary Peter Ainsworth accused the Government of bringing in more "stealth taxes".
"If motorists and consumers think all the Government wants to do is slap taxes on everything, they may respond negatively.
"Tackling the enormous challenge of climate change would have been much easier if they hadn't left it so late."
Liberal Democrat leader Sir Menzies Campbell warned that tackling climate change was imperative and demanded "hard choices".
"Up till now the environmental debate has been joined of moral and scientific grounds," he added.
"Now it is being joined on economic grounds. Up to 20 per cent of GDP of industrialised countries like this - think of the enormous economic impact that would have."
He warned that climate change had a disproportionate impact on poorer countries such as Africa and could have serious consequences in terms of population dispersal and immigration.
He told BBC1's Sunday AM: "We have absolutely no option but to deal with the problem of climate change and nothing but hard choices will do it."
Mr Miliband later refused to comment on the leaked letter, but said the Government would set out its views in the forthcoming pre-Budget report.
He also confirmed that Sir Nicholas Stern's report will warn that climate change poses a huge threat to the UK economy as well as environment.
Interviewed on Sky News' Sunday Live with Adam Boulton, he said: "I think that the scientific debate has now closed on global warming and the popular debate is closing as well.
"The science tells us that we have got 10 to 15 years to radically change the way in which we produce energy and fuel."
He added: "I think it is very significant that the economics revealed by Sir Nicholas Stern's report should be that the longer we wait, and certainly the longer we wait beyond the 10 to 15-year time frame that is set by the scientists the more costly it will be."
By PA
Last Updated: 1:39am GMT 30/10/2006
The new taxes that could be coming your way
The leaked document
Environment Secretary David Miliband has drawn up a wide-ranging package of green taxes designed to change people's behaviour in a bid to offset global warming.
Mr Miliband said road-pricing should "reflect the full environmental impact of the journey".
His proposals, in a leaked letter to Gordon Brown, include hikes on fuel and air passenger duty as well as increased road tax for drivers of the most polluting vehicles.
The leak comes ahead of a report, commissioned by the Chancellor, which will warn of the enormous cost of climate change unless action is taken immediately.
In his letter, seen by the Mail on Sunday, Mr Miliband also demands moves to curb greenhouse gas emissions and says that the tax system is a vital tool.
"Market-based instruments, including taxes, need to play a substantial role," he writes.
"As our understandings of climate change increases, it is clear more needs to be done."
His suggestions include a mechanism to take away from motorists the money they save on fuel when oil prices go down.
This would "maintain pressure on the cost of motoring without individual announcements on fuel duty needing to be made", he says.
Mr Miliband sets out the need to explore a "substantial increase" in road tax for higher-emission vehicles to encourage people to take cars which pollute less.
He proposes that road-pricing should "reflect the full environmental impact of the journey made".
"This would encourage a shift away from private to public transport," the Environment Secretary adds.
He also points out that air travel is currently "lightly taxed". He goes on: "Raising air passenger duty by £5 would raise £400 million a year.
"There is also a case for making flights subject to VAT either on domestic flights, or better still, for all EU flights."
Mr Miliband also warns that lightbulb prices do not reflect their true environmental cost, meaning that people tend not to buy the most efficient bulbs.
"We need to address this market failure through a system of product charges, fiscal instruments and non-tax alternatives, in particular consumer electronics and lighting," he says.
A spokesperson for the Department for the Environment, Food and Rural Affairs refused to comment on the leak.
The proposals follow the Tories' commitment this month to raise green levies to fund tax cuts for families.
But shadow environment secretary Peter Ainsworth accused the Government of bringing in more "stealth taxes".
"If motorists and consumers think all the Government wants to do is slap taxes on everything, they may respond negatively.
"Tackling the enormous challenge of climate change would have been much easier if they hadn't left it so late."
Liberal Democrat leader Sir Menzies Campbell warned that tackling climate change was imperative and demanded "hard choices".
"Up till now the environmental debate has been joined of moral and scientific grounds," he added.
"Now it is being joined on economic grounds. Up to 20 per cent of GDP of industrialised countries like this - think of the enormous economic impact that would have."
He warned that climate change had a disproportionate impact on poorer countries such as Africa and could have serious consequences in terms of population dispersal and immigration.
He told BBC1's Sunday AM: "We have absolutely no option but to deal with the problem of climate change and nothing but hard choices will do it."
Mr Miliband later refused to comment on the leaked letter, but said the Government would set out its views in the forthcoming pre-Budget report.
He also confirmed that Sir Nicholas Stern's report will warn that climate change poses a huge threat to the UK economy as well as environment.
Interviewed on Sky News' Sunday Live with Adam Boulton, he said: "I think that the scientific debate has now closed on global warming and the popular debate is closing as well.
"The science tells us that we have got 10 to 15 years to radically change the way in which we produce energy and fuel."
He added: "I think it is very significant that the economics revealed by Sir Nicholas Stern's report should be that the longer we wait, and certainly the longer we wait beyond the 10 to 15-year time frame that is set by the scientists the more costly it will be."
