Green New Tories to Tax ‘Pollution’, Reveal Multi-Billion Pound Spending Spree to Make UK Carbon Neutral

Britain's Prime Minister Boris Johnson reacts during an event to launch the United Nations
JEREMY SELWYN/POOL/AFP via Getty Images
Victoria Friedman

The Green New Tories have revealed that they will tax “pollution” which will result in an increase in the levy paid on gas, the introduction of a plastic packaging tax, and a multi-billion pound spending spree on projects to make the UK ‘carbon-neutral’ by 2050.

While many Britons may be pleased with aspects of the new budget, such as the petrol duty freeze and the increase in the income tax threshold, they may be less happy to hear about increased levies in other areas and more spending.

“There will be no lasting prosperity for our people if we do not protect our planet,” Chancellor of the Exchequer Rishi Sunak announced at the latter end of his budget speech in the House of Commons on Wednesday, stating: “The Treasury’s net-zero review will set out the strategic choices ahead of COP26 [UN climate summit] later this year. Today’s budget takes the first step.”

“We will increase taxes on pollution. Electricity is now a cleaner energy form than gas. Our climate change levy paid for by companies taxes electricity at a higher rate. So as another step towards equalising the rates and encouraging efficiency, from April 2022 I’m freezing the levy on electricity and raising it on gas,” he announced.

Mr Sunak said that his budget will also “tackle the scourge of plastic waste” by introducing a “new plastic packaging tax” where manufacturers and importers will be charged £200 per tonne on packaging made from less than 30 per cent recycled plastic, the costs likely to be passed on to the consumer.

He also announced that tax relief on red diesel — reduced-tax fuel used in industry — will be scrapped “for most sectors” from 2022, but said the agriculture sector, rail, domestic heating, and the fishing industry will not be affected.

“As well as taxing pollution, we will cut tax and invest in clean transport,” he said, stating the government will present reforms to make it cheaper to buy lower- or zero-emission vehicles.

The chancellor also announced a raft of public spending, including more than doubling research and development investment into the “energy innovation programme” to £1 billion “to help develop cleaner alternatives to red diesel and other fossil fuels”.

He also pledged to invest £300 million to tackle nitrogen dioxide emissions in towns and cities, and “we are investing £500 million to support the rollout of new rapid charging hubs so that [electric car] drivers are never more than 30 miles away from being able to charge up their car”.

In addition, £640 million will go towards a new “nature for climate” fund to plant trees to “capture carbon” and at least £800 million will be spent on establishing “two or more new carbon capture storage clusters by 2030”.

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