Recommendation 16

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