The Case Against Further Green Taxes
The TaxPayers’ Alliance has released the first audit of environmental taxation in the UK alongside a new YouGov poll of more than 2,000 adults commissioned into public attitudes towards green taxes.
The report applies the conclusions of the most prominent experts in the field of climate change research (from the International Panel on Climate Change to academics such as William Nordhaus, “father of climate change economics”, and Sir Nicholas Stern), and compares these studies’ recommendations of the price the UK should be prepared to pay to offset the cost of the UK’s carbon footprint with the actual level of green taxation. Such a comparison is the only way of knowing whether environmental taxes address root problems or whether they are merely revenue-raising measures.
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- In many cases, individual green taxes and charges are failing to meet their objectives, are set at a level in excess of that needed to meet the social cost of CO2 emissions, and are causing serious harm to areas of the country and industries least able to cope.
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- Taking an average of the most widely quoted official and academic estimates of the social cost of CO2 emissions shows that green taxes in the UK are already well in excess of the level they need to be to meet these social costs.
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- The social cost of Britain’s entire output of CO2 was £11.7 billion in 2005 but in the same year, the total net burden of green taxes and charges was £21.9 billion.
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- This means that green taxes and charges are already £10.2 billion in excess of the level they need to be to meet the social cost of Britain’s CO2 emissions. This excess is equivalent to over £400 for each household in Britain.
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Green taxes are therefore already too high if they really are a means of internalising environmental externalities rather than simply revenue-raising measures.
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NEW TPA YOUGOV POLL – Public distrust politicians on the environment
Most believe politicians are not sincere on green taxes
- When asked what they thought the primary motivation was for new green taxes, 63 per cent agreed with the statement: “Politicians are not serious about the environment and are using the issue as an excuse to raise more revenue from green taxes.” Only 20 per cent thought that “Politicians are serious about the environment and are bringing in new green taxes to change people’s behaviour to help reduce carbon emissions.”
Huge number oppose new council recycling charges
- A vast majority (77 per cent) disapprove of local councils placing extra charges for bin collection on top of council tax to encourage recycling, including two thirds (65 per cent) who would “strongly disapprove”.
Fuel Duty and Air Passenger Duty seen as unfair taxes
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- 60 per cent think that Fuel Duty is an unfair tax, compared with just 17 per cent who think it is fair.
- 45 per cent believe that Air Passenger Duty is unfair, compared with 23 per cent who think it is fair.
Trebling Air Passenger Duty would not stop people flying
- Concern for the environment will not lead people to change their behaviour unless there are significant tax increases – in the realm that most politicians would be unwilling to advocate. When asked how much extra air passenger duty would have to cost before they chose not to fly, more than two thirds (71 per cent) would only stop flying if Air Passenger Duty was trebled from its current rate. If politicians only doubled it, 81 per cent of people would still choose to fly.
New green taxes must only ever be used to reduce other taxes
- As a result of this scepticism, there was a very strong view that any new green taxes should not add to the already high tax burden but should be met with reductions in other taxes. A majority (61 per cent) thought that if extra ‘green’ taxes were raised, “the extra funds should be used to reduce other taxes”.
Public split on further green taxes
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There is no majority support for moving towards additional green taxes. When asked whether, “Generally speaking do you approve or disapprove of additional ‘green’ taxes on motoring and air travel?”, 46 per cent disapproved while 45 per cent approved and one in four people “strongly disapproved” against less than one in ten who “strongly approved”.

- Calls for tax breaks to fight climate change
"But politicians do no favours to the save-the-Earth campaign with "green taxes" that voters reckon are a con to grab more of their hard-earned cash." - Sun
Web Update
Recent highlights on the new TPA website
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Campaign: TPA fisk of George Osborne in the Times - why the Conservatives are wrong to pledge to match Labour spending plans...
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Burning Our Money: Weekly Waste Round-Up 72 - £251,000,000 wasted this week...
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- Burning Our Money: Politics of Envy Meets Winter of Discontent - unions in denial that the City keeps the whole show on the road...
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Better Government: Corporation Tax Too Complex For HMRC - the taxmen struggle with the complexity they have created...
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- Economics 101: One-third of Biggest Businesses Pay No Tax - why cutting corporation tax would raise more revenue, not less...
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Burning Our Money: Another Bonus Farce - the unearned bumper bonus for the head of the wasteful Learning & Skills Council...
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Better Government: Direct Evidence That Science Exams Are Being Made Easier - teaching to the test is a growth industry...
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Burning Our Money: Non-job of the week - this week's job is a "Community Safety Officer" at Hackney council...
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Campaign: Council Tax Protest in Barnet - the TPA hastily organised this magistrates court demo in support of a TPA member...
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Economics 101: Conservatives Plan to Cut £14bn Off Red Tape Burden - TPA's response to John Redwood's proposals...
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"I've had an incredibly enjoyable time at one of the highest-profile and most energetic campaigns in Britain. We have achieved an enormous amount and are now a permanent presence in the UK political debate. Thank you to everyone who has helped the TPA grow and increase its profile over the last year, and special thanks to all the ordinary TPA supporters I have met and spoken to. It has been a real pleasure working daily for a cause I believe in and I wish the campaign all the best for the future."
“It’s been a privilege to work with Blair over the past year. Without his help, we wouldn’t have become the most highly-quoted non-partisan group in the UK. The 215 media hits we got in August are a testimony to his hard work in generating media coverage for the campaign. We wish him all the best for his new job.”