On the eve of the publication of the Gordon Brown commissioned Stern Review, a leaked letter from Environment Secretary David Miliband to the Chancellor reveals plans to introduce green taxes on motorists, air travel and energy wasting products.
The letter, dated 18th October, and published in today’s Mail on Sunday (30th October), calls for urgent action to address climate change in next month’s public spending review and next year’s budget.
Mr Miliband’s letter recommends a substantial rise in petrol tax for high polluting vehicles in addition to increased road tolls. Aviation fuel will also face taxation and both domestic and EU destined flights may become subject to VAT. In addition, energy wasting appliances, including standard light bulbs, will also face new levies.
Speaking on ITV News this evening, Shadow Environment Secretary Peter Ainsworth criticised the approach, referring to the mooted tax rises as a “punishment”, while Liberal Democrat environment spokesperson Chris Huhne went for the soundbite throat with the catchy, “Tax pollution, not people”. Rumours that Mr Huhne was the creative force behind the ‘Kill the Bill, Axe the Tax, Maggie Out’ statements of the late 1980s and early 1990s remained unconfirmed at time of going to press.
Conducted by Sir Nicholas Stern, former chief economist at the World Bank, the Stern Review will highlight the urgency of tackling climate change, with an emphasis on the financial cost of dealing with issue now rather incurring astronomical costs in the future – an estimated £3.6 trillion.
The renowned development economist told the BBC: “Our actions over the coming few decades could create risks of major disruption to economic and social activity, later in this century and in the next, on a scale similar to those associated with the great wars and the economic depression of the first half of the 20th century.”
Global Cool will be present at the first reading of the Stern Review tomorrow morning. Please check back tomorrow for our full report.
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