Major cuts in road expansion and abolishing tax allowances for high carbon industries are being proposed as ways to slash national debt by £12 billion over the next four years.
The report –
Cutting Back On Carbon Spending – by the
Green Alliance think tank has been commissioned by Greenpeace, the RSPB and WWF-UK. Its aim is to counter any argument that
low carbon equals big spending. It has clearly been timed for publication ahead of the general election. It argues that the next ruling party must review public expenditure and tax policy to get value for
money on “every penny of tax raised” as well as follow through on commitments to transform the UK into a low carbon economy.
To do this it suggests a number of low carbon routes that would achieve savings quickly. These include reducing public sector energy and fuel consumption, which it says could save £1.5 billion. One example to achieve these savings, it suggests, is through the Ministry of Defence reorganising the logistics of transporting and protecting its fuel supplies.
The report also proposes a two-year moratorium on
road expansion, which it says could save the UK £2.4 billion. It suggests a further £2.8 billion could be saved by changing the methodology by which public spending on roads is budgeted.
It also calls for the abolishing of allowances against
Petroleum Revenue Tax and the
Climate Change Levy, which it believes could save £2.9 billion. In addition, it says the abolition of zero-rating of VAT for
aircraft and
ships could save a further £2.2 billion.
If all the proposed measures were undertaken, then the report says spending could be reduced by nearly £7 billion over four years, and tax receipts may increase by about £5 billion – thus reducing the deficit by £12 billion.
"The hole in the country's finances means, inevitably, that measures to support the environment and tackle climate change will come under pressure,” said David Norman, head of campaigns WWF-UK. “This report is a grown-up response to this dilemma, and demonstrates that with a clear vision and sense of purpose the UK can move toward a low carbon economy without profligate spending. Not to do so would cost us too much in the long run."
Dr Doug Parr, Greenpeace Chief Scientists, added: “If the major parties are serious about cutting both the deficit and our carbon emissions then they would be reckless to ignore this new report. We’ve got to stop handing out millions in tax breaks to the airline industry and approving roads instead of cleaner alternatives. Britain can be a world leader in renewable technologies and low carbon transport, but only if we stop bailing out the dirty industries of the 20th century.”
The Green Alliance is an environmental think tank that lobbies UK political leaders to deliver ambitious solutions to global environmental issues.
Related News:
Carbon Reduction NewsGreen Finance NewsRelated Links:
www.green-alliance.org.ukwww.greenpeace.org.ukwww.wwf.org.ukwww.rspb.org.uk