What happened to the "Green" Budget?

21 March 2007

Greens accuse Gordon Brown of complacency on climate change - the measures announced will do little to reduce UK emissions.

The much heralded "Green" Budget was yet another missed opportunity and the measures announced will do little to curb UK emissions say Eastern Region Green Party.

As well as his golden financial rules and famous "prudence", the Chancellor should have used his record period in office to set a green rule of year by year reductions in UK carbon emissions. As the Government's own research by Stern concluded, failure to act now on tackling climate change means we will pay more, later.

Cllr. James Abbott, Eeastern Region Green Party Climate Change Spokesperson said:

"The Government says it agrees with scientists that climate change is a huge threat to our future yet has again missed an opportunity to do something about it. We welcome many of the measures as far as they go, but much tougher action is needed to make a real difference and get the UK on a sustainable downward trend in its pollution emissions. UK CO2 output has gone UP under Labour and its not surprising given the continued mismatch between its rhetoric and its actions".

The Green Party estimates that the Chancellor's additional 50 % for green grants for homes equates to just £6 million - welcome, but by comparison would buy only around 600 metres of the proposed A120 new road through the countryside of Essex - just one of the many major road schemes (costing £ billions in total) that are being proposed for the UK. The Government's roadbuilding spree will generate even more traffic and emissions than we have now - wiping out the efforts many householders are making to go green.

Similarly a 30% increase for the worst polluting vehicles to £300 this year and £400 next year is welcome as far as it goes, but research shows this is not enough to change behaviour. Gordon Brown also refuses to do what Greens suggest in using environmental tax revenue to invest specifically in public transport and road safety to give people safer, greener transport choices. A fuel duty rise of 19p would raise a large sum for public transport and would have cut carbon more than the rest of the budget put together - some 19 million tonnes over the next year.

Exempting zero carbon homes from stamp duty sounds good but means little - there are very few such houses in the UK. Mr Brown should have been far more radical by financially encouraging existing households and businesses to install micro-generation and make their homes more energy efficient.

The Green Party is also pointing to the failure - yet again - of the Government to tackle the headlong growth in aviation. Air Passenger Duty should have been increased substantially and the Government should immediately abandon its completely contradictory support for new runways and other airport expansion programmes.

The Greens are also questioning where Gordon Brown's social concern has gone to. Corporation tax on big business was reduced in the budget at a time when corporate profits are at record levels. Meanwhile, Gordon Brown raised tax on smaller businesses and the lowest rate 10% tax band for individuals was abolished - a regressive move which will hit those on the lowest incomes who already pay high marginal rates of taxation.