Grainne Gilmore, Economics Correspondent
Win a fitness package worth more than £3,000

The Government’s commitment to environmental concerns was called into question yesterday as it emerged that revenue from green taxes would remain close to record lows, despite a Budget that claimed to be environmentally friendly.
The Treasury is to raise the equivalent of 2.8 per cent of GDP next year from environmental taxes, such as fuel, vehicle excise and air passenger duties, the Institute for Fiscal Studies (IFS) said. This is fractionally up from last year’s 2.7 per cent but it is one of the lowest figures since 1987, when green taxes made up 3.1 per cent of GDP.
Fuel duty makes up the bulk of environmental taxes, but it has risen by less than inflation in recent years. Even the 2p per litre addition that Mr Darling delayed by six months is an inflationary rise. The halfpenny above inflation rise announced in Wednesday’s Budget will not kick in until 2010.
Vince Cable, deputy leader of the Liberal Democrats, said: “This does represent a major failure for the Government. What was striking was that Alistair Darling used apocalyptic language about the environment and then the only measures he suggested were minimal and deferred. There is a lack of real will to change.”
In the Budget, Mr Darling said: “Our greatest obligation to future generations must be to tackle climate change. There will be catastrophic economic and social consequences if we fail to act.”
Last month, the Commons Treasury Committee said the Government’s use of green taxes had been too “timid”.
Andrew Leicester, of the IFS, said: “Green taxes need to keep pace with the economy to make sure they are having an impact.”
Nick McChesney, of PricewaterhouseCoopers, the accountant, said: “In terms of overall yield there is more talk and not enough action. It is surprising that the Chancellor hasn’t gone farther. He has the chance to shift more taxes on to bad environmental behaviour.”
The IFS pointed out that the Government was introducing other green measures that had no tax implications, such as carbon emissions trading schemes.
It emerged yesterday that Mr Darling may be banking on an £8 billion cut in spending that would take effect after the general election. The IFS said that he would have to find an extra £4 billion to plug the £7.5 billion deterioration in the public finances since the PreBudget Report in October, on top of the £4 billion he has already planned to raise.
Robert Chote, director of the IFS, said: “To make the numbers add up, he is now looking for an £8 billion spending cut over the two years covered by the 2009 spending review . . . [which] will not of course bite until after the next general election.
“If there is a fiscal repair job to be done, Mr Darling and Mr Brown may be leaving it until after polling day.”
A Treasury spokesman said: “The assumptions that underpin our numbers are prudent and cautious and audited by the independent National Audit Office.”
The IFS also said that the Government was in danger of breaching its sustainable investment rule in 2010-11 if the projections set out in the Budget were not met. The sustainable investment rule, which states that public net debt should not exceed 40 per cent of GDP, has a 48 per cent chance of being broken in two years’ time, it said.
Sliding scale
— Revenue from environmental taxes in 2007-08 is set to be £38bn
— This is down from £39.2bn, in today's terms, raised in 1998-99 and £40.2bn in 1990-2000
— The highest proportion of GDP raised by environmental taxes was in 1998, when receipts equalled 3.6% of GDP
Industry sectors news at a glance. Interactive heatmap, video and podcast
The inside track on current trends in the charity, not for profit and social enterprise sectors
Read our exclusive 100 Years of Fleming and Bond interactive timeline, packed with original Times articles and reviews
Everything the Business Traveller needs to know to make a better trip
Shortcuts to help you find sections and articles
05/2005
£13,500
08/2008
£109,950
2006
£10,750
Great car insurance deals online
£Excellent+ executive benefits
Torres and Partners
London
£49,229 - £62,035 pro rata
Charity Commission
London/Liverpool/Taunton
Alstom Power
Europe
Six Figure
Rolls Royce
Midlands/Europe
From £89,950
Great Investment, River Views
Special Offers now available
At the new sophisticated
Encore Las Vegas Resort!
Cruise the Islands of Hawaii - Pride of America
List your property with two leading travel websites
Great travel insurance deals online
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths
News International associated websites: Globrix | Property Finder | Milkround
Copyright 2008 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.
The fact is, that the whole point to the greenhouse gas -- man caused warming because of CO2 emissions -- nonsense is to justify raising taxes like the "green" taxes in the UK, levy an UN tax on the world, and to enrich the carbon traders, like Al Gore.
Actually, there is not even any persuasive evidence that man's CO2 emissions have anything to do with warming. The theory that the sun's variations cause climate change is not only useful for predicting future climate variations, unlike the CO2 theory which cannot predict anything correctly, it also explains why the planets, even Pluto are warming in the same pattern as the earth. The vaunted UN IPCC group says it's a coincidence. Given the frauds the IPCC has perpetrated, like the "hockey stick" graph, how can anyone believe anything they say?
Green taxes are an abuse of the taxpayer, and just another tax scam which is making the UK less competitive, especially against Asian and African countries who think it is wonderful.
Arthur E. Lemay, Paris, France
China and India obviously do not have their heads in the sand over this phony "green" issue. They will continue to develop at an alarming pace and we need to be able to compete. I am thankful that my country, America, has not taken this as far as Europe. However, I fear for Europe as our long time friends and allies, we need each other to be strong for the future.
Matt, Texas, USA
Surely the idea of green taxes is to discourage people from waste so when we do stop waste and thus avoid the tax, the government complains. Or is it because, as we all suspect, it is just another Labour ploy to get more cash in to be wasted with bad management and MP's expenses, pensions, etc.
B J Deller, Marbella, Spain
Who wants to pay so-called 'green' taxes, when those taxes are used to finance wars?
Paul, Coventry,
Why does every thing to do with 'Green issues' automatically mean the British public should be taken for more money?
James, Sherborne, Dorset
I think Green taxes are completely pointless but I think the money raised should go to funding alternative energy sourses like fusion.
Meera, Reading, UK
I agree with our American cousin, people are fed-up with "green taxes"-most know its just another revenue raising con-its like the new car tax thresholds, when I ran a Range-rover and did 80 miles a week, my neighbour runs a Mondeo for work and does 300 miles a week,who is polluting the most, and ofcourse the "gas-guzzler" pays more in fuel anyway.
Trouble is with this country politicians cant come up with anything else-sad isnt it when they are on £250,000 inc expenses, trouble with us Brits is we just take it,and vote the same muppets in again!
Steve, coventry, uk
There are no such thing as "green" taxes! When will people wake up and realise this! As David Leslie says below, they are just taxes like any other. The only difference is that they are justified by taking the high moral ground. Put simply, what would the Govt do if it's "green" taxes on fuel and cars actually worked? They would lose huge amounts of revenue... hardly a desirable outcome for Govt. So, in fact, the Govt have no interest whatsoever in reducing the amount of "polluting" cars on the road. It ain't rocket science is it??!
GLS, Liverpool,
I wonder how much it would cost to re-nationalise the railways and then offer free travel on them to all passengers?
When offset against the national road building and repair programme it would probably be viable. The rolling stock would have to be expanded, of course.
Mike Poulsen, Reading, Berkshire
If 'green' taxes are imposed in one area, to be disbursed in another, there wouldn't be a problem. Unfortunately this doesn't happen, so 'green' taxes are just tax, the same as every other tax.
David Leslie, Perth, Scotland
All tax, âgreenâ or otherwise is used by government to burn yet more fuel. Some of course is justified, but more and more administrators, failed IT projects, and now we learn £10,000 fitted kitchens for MPâs simply adds to the waste.
Lower tax, reduce the population by getting British people to do the jobs, which Eastern Europeans find easy to find and our fuel usage is guaranteed to go down.
George Ball, Diss,
On two recent visits to the UK I must admit I was astounded at the amount of Government "spin" about so called "green" issues! To add to this just about everyone I met was thoroughly fed up with the whole issue! if the globe warms we will all move to sightly higher ground and you can grow figs in the UK! That's how the human race has adapted for thousands of years and will continue to do so! As for taxes; can anyone in any country tell me any tax which is actually used for the Goverment stated purpose?
Rod Garr, Miami , USA
Imposed by the European Commission, Britain has a legal obligation to reduce carbon dioxide emissions by 20 per cent in 2020 compared to 1990. Nuclear power is the obvious choice, but the green lobby will object to it to the extent that it may never happen. As a back-up plan for this eventuality, the government has recently announced approval for a coal fired power station at Kingsnorth and a gas fired station near Plymouth. Thus, the greens have been kicked up the backside by their own carbon footprint. There can be no considered long term energy policy where the EU makes demands on one side and the eco-warriors prevent a rational choice on the other. As reported in the Times, the alternative is 20,000 wind turbines, which the said warriors will also oppose. As no option exists, environmental taxes will be used to diminish demand in order to meet EU targets. Our global competitors will be laughing all the way to the bank.
Dwight Vandryver, Scholar Green, Cheshire, UK
The sooner the "green tax" concept is dropped along with all the other carbon offset or carbon auction nonsense the better. I'm sure the Chinese are laughing up their sleeves at the prospect of us actually believing these things will make a difference and how they are crippling us economically. If the government can state how these taxes were used to actually reduce pollution or the dreaded CO2 I'd be more impressed but when Darling points out that his main focus is on reducing "child poverty" (give them more pocket money?) I guess it's back to tax everyone to the hilt and spend it on as many failed projects and 5-year plans they can dream up.
JohnM, Perth, Scotland