The Treasury and HMRC are failing to respond to a “climate storm breaking all around us”, failing to make the necessary changes to tax systems and short-term funding packages needed for the ‘just’ transition to net-zero. That is according to a damning new report from the Public Accounts Committee (PAC) today (28 April). Building on the Committee’s recent report on net-zero delivery, which accused the Government of having no credible plans in the short and mid-term to back up its long-term climate goals, the report takes a specific look at the ways in which Government finance must transform. One of the major recommendations is around tax system reform. After the recent Tax Day paperwork made no reference to climate or energy, the report argues that the Government has a “very limited view of the role of tax” in delivering climate targets – both by incentivising low-carbon processes and technologies and making high-carbon behaviour from businesses and individuals more expensive. MPs on the PAC heard evidence that little progress has been made in this field since 2011.
Edie 28th April 2021 read more »
The Treasury cannot explain how it will manage declines in tax revenues worth £37bn from fossil fuels as the UK shifts to a clean economy, MPs have warned. A report from the influential parliamentary public accounts committee also warned that the Treasury had not set out how the tax system was going to help the government meet the target to cut emissions to “net zero” by 2050.
Guardian 28th April 2021 read more »
Government lacks ‘clear vision’ for how taxes could help UK reach net zero, MPs warn. A report from the Public Accounts Committee said government’s financial departments ‘could not explain’ the role that taxes will play in achieving net zero. A stark report from the Public Accounts Committee said that the Treasury and HM Revenue and Customs have no “clear vision” of how taxes could help the UK meet its legal target of net-zero emissions by 2050. “We [are] concerned that HM Treasury and HMRC – the departments responsible for the strategic oversight and administration of the tax system – have taken a very limited view of the role of tax so far,” the report reads.
Independent 27th April 2021 read more »
A pay-per-mile road-pricing system must be introduced by the end of the decade because the switch to electric cars risks leaving a £40 billion hole in the public finances every year, MPs have been told. Research to be submitted to the cross-party transport committee today said that charges based on emissions, vehicle weight and traffic levels should replace road taxes by 2030. It said drivers should be incentivised to opt into the system from 2023 to avoid a “big bang” switch at the end of the decade, which could be politically difficult to deliver. The report from Greener Transport Solutions, a not-for-profit group, overseen by academics, said that some form of road pricing “will be essential” as the country shifts towards electric vehicles.
Times 28th April 2021 read more »