8
Conclusion
Fifty-Fifth Report - Environmental tax …
Acknowledged
HM Treasury also said that two years ago it had been asked to prepare a report on the costs and benefits of transition to net zero.12 This report was due in autumn 2020 but has been delayed.13 An interim report was published in December 2020.14 HM Treasury 6 C&AG’s Report, …
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HM Treasury also said that two years ago it had been asked to prepare a report on the costs and benefits of transition to net zero.12 This report was due in autumn 2020 but has been delayed.13 An interim report was published in December 2020.14 HM Treasury 6 C&AG’s Report, paras 4–5; HM Revenue and Customs, Annual Report and Accounts 2019 to 2020, HC 891, November 2020, pages 185, 191 7 C&AG’s Report, para 2.19 8 Ev 1, The Association of Accounting Technicians, paras 3.41–3.45 9 Ev 3, OVO Energy, pages 2–3 10 Ev 2. Green Alliance, page 1 11 Qq 39–40 12 Qq 9, 17 13 HM Treasury, HM Treasury’s review into funding the transition to a net zero greenhouse gas economy: terms of reference, November 2019, https://www.gov.uk/government/publications/net-zero-review-terms-of-reference/ hm-treasurys-review-into-funding-the-transition-to-a-net-zero-greenhouse-gas-economy-terms-of-reference, accessed 6 April 2021 14 C&AG’s Report, para 2.21 10 Environmental tax measures said the interim report set out that tax is one of a range of levers, including regulation, legislation and public spending, the government has to support transition to next zero. HM Treasury now expects to publish the final report soon.15
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Government response AI summary
The government confirms HM Treasury is actively supporting environmental goals through an ongoing analytical Net Zero Review, whose final report will highlight factors for designing policy to allocate transition costs.
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HM Treasury
15
Conclusion
Fifty-Fifth Report - Environmental tax …
Acknowledged
We pointed out that the ban on new petrol and diesel cars from 2030 is likely to have an impact on both the type of vehicles and volume of fuel purchased well before then.27 Under the lead of the Department for Transport, the government is using a range of levers …
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We pointed out that the ban on new petrol and diesel cars from 2030 is likely to have an impact on both the type of vehicles and volume of fuel purchased well before then.27 Under the lead of the Department for Transport, the government is using a range of levers to incentivise consumers to move to electric vehicles now. The levers include: the plug-in car grant scheme; support for home, destination and on route charging; lower rates of Vehicle Excise Duty and Company Car Tax for cleaner vehicles; and raising consumer awareness. The cross-government Office for Zero Emission Vehicles, which ultimately reports to the Secretary of State for Transport, spent a total of £1.1 billion between April 2010 and March 2020 on funding the plug-in car grant, charging infrastructure schemes and other schemes. The government’s intention to stop the sale of new petrol and diesel cars by 2030 will require a rapid growth in the number of zero-emission cars over the next decade.28
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Government response AI summary
The government acknowledges the fiscal implications of the transition to net zero, particularly the erosion of motoring tax revenue, and states its intention to ensure revenue keeps pace and to plan for sufficiently early and broad consultation.
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HM Treasury
16
Conclusion
Fifty-Fifth Report - Environmental tax …
Acknowledged
It may also take time for government to introduce tax changes needed to make- up for the reduction of fuel duty. The government normally consults on tax changes as it has recognised the importance of engaging with individuals, businesses and other organisations on possible tax measures.29 Tax changes are often …
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It may also take time for government to introduce tax changes needed to make- up for the reduction of fuel duty. The government normally consults on tax changes as it has recognised the importance of engaging with individuals, businesses and other organisations on possible tax measures.29 Tax changes are often announced two years or more before they are introduced. For example, the new Plastic Packaging Tax being introduced in April 2022 was first announced in the October 2018 Budget.30 22 Q 32; HM Treasury, Net Zero Review: Interim report, December 2020, paras 2.37–2.39, Chart 2.E; Office of Budget Responsibility, Economic and Fiscal Outlook, March 2020, page 72; HMRC, National Statistics: Income Tax liabilities statistics: tax year 2017 to 2018, to tax year 2020 to 2021, June 2020, Table 2.6 23 HM Treasury, Net Zero Review: Interim report, Chart 2.E 24 C&AG’s Report, Reducing carbon emissions from cars, Session 2019–2021, HC 1204, 26 February 2021, para 3 25 HM Government, The Ten Point Plan for a Green Industrial Revolution, November 2020, page 14 26 Qq 27–28, 38 27 Q 29 28 C&AG, Reducing carbon emissions from cars, Session 2019–2021, HC 1204, 26 February 2021, paras 7, 1.4, 1.11–1.12, 1.14 29 HM Treasury, The new Budget timetable and the tax policy making process, December 2017, section 3.1, https:// www.gov.uk/government/publications/the-new-budget-timetable-and-the-tax-policy-making-process/the-new- budget-timetable-and-the-tax-policy-making-process, accessed 6 April 2021 30 HM Treasury, Budget 2018, HC 1629, October 2018, para 3.56 12 Environmental tax measures
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Government response AI summary
The government acknowledged the fiscal implications of the transition to net zero, noting the need to ensure motoring tax revenue keeps pace and committing to early and broad consultation on future tax changes.
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HM Treasury