Budget highlights environmental concerns
TODAY'S Budget has introduced a number of new measures designed to encourage homeowners and businesses to do more to protect the environment.
As expected, the Chancellor moved to encourage retailers to take a tougher line against the environmental damage done by single use carrier bags.
He did not go as far as to announce a tax on plastic bags but he has set out a timetable warning retailers that unless they slash the number of bags handed out, they will be forced by law to charge for them, with the money raised going to environmental charities.
The Government announced it would introduce legislation in 2009 to impose a charge on retailers if the Government “has not seen sufficient progress on a voluntary basis” to cut the amount of single-use carrier bags.
This would lead to a 90% reduction in the bags, with around 12bn fewer plastic bags in circulation, Darling said.
Tesco in particular have resisted attempts to be swayed by the Government – preferring to set its own targets for bag reduction.
The move sends a powerful message to the supermarkets which are resisting pressure to impose charges to comply by next year.
Mr Darling told MPs: “Given the damage that single-use carrier bags inflict on the environment, we want to be able to take action. We will introduce legislation to impose a charge on them if we have not seen sufficient progress on a voluntary basis.”
However the move was met with some concern.
Leeds-based Michael Grimes, head of waste at international law firm Eversheds, said: “The Chancellor announced in today's Budget that he will introduce legislation to ban single use carrier bags by 2009 if it was not done voluntarily. A ban would be difficult to enforce, who would do it – councils, the police? Certain bags may be classified as part of the packaging in which goods are sold. How could a ban or a price be enforced? This is a big issue. Like many issues around waste management, winning the hearts and minds argument may be better for long term results than compulsion – people need to realise the need to safeguard resources and reduce, reuse and recycle for themselves.”
Mr Darling said the Climate Change Committee is to advise the Government on whether to establish a new target of reducing carbon emissions by 80% by 2050, up from 60%. The first carbon budgets to 2022 will be announced alongside the Budget next year.
He said homeowners who make their homes greener should be rewarded by energy suppliers – saying the Government would give £26m of new funding to help make homes more environmentally friendly.
New non-domestic buildings are to become zero-carbon from 2019 and the Government will be asking the European Commission for tougher targets on car fuel emissions.
David Heaton, partner and head of employer consulting at accountants Baker Tilly in Leeds was sceptical about the Government's zero-carbon pledges.
He said: “The Government's drive towards zero carbon homes based on the present technology available amounts to pie in the sky. Even in countries like Germany – where environmentalism was born – you cannot get a zero-carbon home. They simply do not exist.”
Businesses are also urged to do their bit for the environment with the use of smart meters extended to medium and large businesses.
He also urged businesses to make the most of the economic opportunities offered by the issue of climate change. The Chancellor said he wants to see one million jobs in environmental industries in the next two decades.
Revenue from plane duty will be increased by 10% because aircraft emissions are forecast to grow.
The Government is also set to encourage use of only the most sustainable biofuels, by shifting support away from the duty differential to the Renewable Transport Fuel Obligation in future years.
The climate change levy will increase in line with inflation from April.
