RTo stop runaway climate change, governments can use tax increases on petrol and diesel. Rishi Sunak (the chancellor) seems to want to accelerate, rather than slow down, the pace of planetary destruction. In this weeks mini-budget, Rishi Sunak appears to be likely to announce a temporary 5p/litre reduction in fuel duty. This could reduce the cost of filling a family car by about 5p per litre. 2.75It might be of assistance to those who have suffered because pump prices rose in the wake the Russian invasion. But this is a false economy. Transport is still possible despite the pandemic lockdowns. remainedThis sector is responsible for 24% UK greenhouse gas emissions.
Cutting fuel dutyIt is a blatant lie that the government claims to be a green leader. It is also a regressive step. The New Economics Foundation SaysOnly 7% of the fuel duty savings will go to the poorest five percent, while one-third will go the wealthiest five. If he decided to pursue the policy, Mr Sunak would hand money to people according to how fuel-efficient their cars are. Labour has backed Mr Sunak. This is a triumph for political expediency over the environment. The parties are not aware that they cannot upset large numbers of voters. Polls Please suggestA government without a majority in parliament would be formed if an election were held today.
The Treasury could lose around 4bn in tax receipts each year if the government reduced fuel duty as suggested. It would be more beneficial for the government to invest such amounts in increasing investment in secure, renewable energy such as onshore wind and solar or to fund policies that reduce the energy demand in homes, industry, and other places. By preventing the climate crisis, short-term costs for the Treasury can translate into long-term gains for the country.
Reduced fuel taxes would make the UK more dependent upon Russia, which supplies 13% all diesel. The thinktank, however, is in opposition. E3GIt is possible to reduce Russian gas imports by as much as 80% through energy efficiency measures in homes. This would mean that households would be on average between 130 and 170 dollars better off each year. E3G claims that combined with a drive for renewables, the UK could become a “greener” country. EliminateRussia will cut off its gas supply entirely in 2022.
Despite lower growth and higher inflation than expected, Mr Sunak will still have cash to spend, even within the Treasury’s own fiscal rules. Goldman SachsSunak’s former employer claims that the government will have between 45bn to 75bn in fiscal headroom. According to the investment bank, Mr Sunak will be focusing on levelling the country and, in light of the war in Ukraine boosting the UK defense budget by 9bn, Ministers could be more creative by, for example, introducing cheap or even free public transport, such as the one introduced in Estonia’s capital. TallinnOr that is being tested in BostonThe USA. If Mr Sunak wanted fiscally neutral policies, he could tax car drivers. The cash could then be used to fund public transport. Since 2010, fuel duty has not increased. Since 2010, fuel duty has not increased. This has led to more pollution and higher greenhouse gas emissions. Politically, increasing costs for motorists is difficult as it involves political risk. However, increasing costs for motorists is not a good idea as it could lead to the end of the planet.
