Carbon taxes that only benefit the well-off will fail at the ballot box. Tax policy in Britain is both remarkably effective and, at the same time, a mess. It is effective insofar as taxation raises an extraordinary amount of money. More than £630 billion was levied in 2019-20. However, it is also a mess as new taxes have largely been introduced by political opportunism rather than using any clear strategy. Nowhere is this more apparent than in the way the UK taxes carbon. An uneven patchwork of taxes and subsidies leaves a rather muddled set of incentives to reduce carbon usage from all parts of our life. If the UK is to have any chance of going net zero by 2050 then this must change.
Times 2nd Aug 2021 read more »