Source · Select Committees · Public Accounts Committee
Recommendation 19
19
Accepted in Part
When we asked HM Treasury whether the tax system would have a role to play...
Conclusion
When we asked HM Treasury whether the tax system would have a role to play in achieving net zero, it said the role of tax would evolve over time from Budget to Budget.35 However, HM Treasury also recognises that as net zero is a 30-year programme, it needs to think about interventions over a long timeframe and not simply year by year.36
Government response summary AI-generated
The government agrees with the implied recommendation for long-term tax planning for net zero, committing to write to the Committee on the pros and cons of a roadmap by Autumn 2021. However, it notes reasons why a standalone tax roadmap may not be appropriate and defers decisions to Ministers.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Accepted in Part
HM Government · verbatim extract
Accepted in Part
The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2021 The government agrees to write to the Committee on the pros and cons of setting out a longer term roadmap on tax and net zero. It is not always appropriate for the government to pre-announce tax reforms given the issues caused by forestalling activity and wider market uncertainty. A standalone tax roadmap for net zero may also limit the strategic consideration and presentation of tax alongside regulatory and spending options. However, the government fully understands the importance of public engagement on tax policy and strategy. Any changes to tax policy are typically announced at fiscal events so that they can also be considered within the context of the tax system more broadly. In addition, where possible the government holds consultations on major tax reforms to support understanding of these measures. Decisions on whether to publish a roadmap are a matter for Ministers.
Read the full response on Parliament ↗