Source · Select Committees · Public Accounts Committee
Recommendation 21
21
Against this background, we asked HM Treasury whether it would publish its plans so that...
Conclusion
Against this background, we asked HM Treasury whether it would publish its plans so that taxpayers may prepare for how and when taxes might need to change in order to achieve net zero. HM Treasury said that it was sure that in setting out its plans the government will be very conscious of the need to give households and businesses proper time to understand the nature of the transition and where the likely costs might fall, so that they can plan accordingly.39 31 Qq 35–36 32 HM Treasury, Budget 2021, HC 1226, March 2021, sections 2.85, 3.16 33 HM Treasury, Budget 2020, HC 121, March 2020, section 2.37 34 Q 49 35 Q 12 36 Q 85 37 C&AG’s Report, para 2.19 38 House of Commons Treasury Committee, Tax after coronavirus, Twelfth Report of Session 2019–21, HC 664, March 2021, page 5 39 Q 49 Environmental tax measures 13 2 Managing environmental tax measures Environmental impacts of tax measures
Government Response
Not Addressed
HM Government
Not Addressed
3.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2021 3.2 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. 3.3 Decisions on whether to publish a roadmap are a matter for Ministers.