Select committee: Environmental Audit Committee
Recommendation 4
Second Report - The UK's footprint on global biodiversity
Published 30 Sep 2021
Paragraph 26
Environmental Audit Committee Biodiversity and Ecosystems All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
Ministers should consider how best to encourage behavioural change towards more sustainable and ethical patterns of consumption. Subsidies, environmental tax measures and tax reliefs are some of the financial and fiscal tools available to government. The Public Accounts Committee has criticised the Government’s grasp of the potential for tax measures to bring about environmental change and has recommended that from the next budget, the Treasury should: assess the environmental impact of every tax change considered; and publish the expected environmental impact for each tax measure in the budget, including the extent of behavioural change, alongside forecasts for tax receipts. The Treasury have since rejected these recommendations as impractical and not cost-effective. We consider this to be a short-sighted approach; it will be more costly to the environment and the economy to not consider fully the environmental impacts of policy and tax changes. The approach calls into question the extent to which environment costings are properly considered in developing and setting tax policy.
From: Environmental Audit Committee, Second Report - The UK's footprint on global biodiversity (HC 674), paragraph 26, 30 September 2021
Government response
The government responded to the whole report on 1 February 2022 (deadline 30 November 2021).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government's response sets out domestic and international action on biodiversity, agreeing with some recommendations, such as support for a more ambitious species goal, while disagreeing with others.
- On a footprint target, the government says it will not consider setting one "until it can be certain that it would be supported by a robust evidence base" and avoids unintended consequences. It anticipates the new overseas-impact indicator will appear in the next (2022) framework update.
- On taxation, it agrees it is important to consider environmental impacts of relevant tax changes, but says it does "not agree with the Committee's specific recommendation" to assess every change, citing practicality and cost.
- On forest-risk commodities, it points to Environment Act due diligence rules on illegally occupied land and to other disclosure measures, rather than a wider ban covering the finance sector.
- On public procurement, it has "committed to a consultation on strengthening the GBSF in early 2022", and says it will take the Committee's recommendation on clear definitions into account in a review.