Miliband proposes green taxes to tackle global warning
Environment secretary David Miliband has confirmed he has proposed a package of green taxes to combat climate change.
The controversial plans include increasing the cost on air and fuel passenger duty, hikes on road tax for the most polluting vehicles, and levies on energy-wasting appliances.
“Pay as you drive taxes”, extra VAT on all EU flights, and increased light bulb prices were also mentioned.
His proposals, made in a letter to chancellor Gordon Brown, were leaked to the Mail on Sunday newspaper, but Mr Miliband has confirmed he is considering the plans.
“In the UK I think we should be proud that our country is leading the way in the reduction of the greenhouses gases, the carbon dioxides that are so dangerous,” he told Sky News.
He added that there is an agreement between Labour and the Conservatives that climate change should be high on the agenda, saying: “I think it’s good that the Conservatives have come out of the Stone Age, they want to debate these issues.
“I look forward to the next election when all parties are competing to show that they can make a difference on the climate.”
In Mr Miliband’s letter dated October 18th, the environment secretary calls for taxes to be used to reduce the level of greenhouse gas emissions.
“Market-based instruments, including taxes, need to play a substantial role,” he wrote. “As our understandings of climate change increases, it is clear more needs to be done.”
He added that air travel needs to be looked at because it is “lightly taxed”. Campaigners have long argued that aviation taxes are too low, but the government has stressed the need to keep a balance between people’s desire to travel and the cost to the environment.
“Raising air passenger duty by £5 would raise £400 million a year. There is also a case for making flights subject to VAT either on domestic flights, or better still, for all EU flights,” Mr Miliband wrote.
His proposals come ahead of tomorrow’s publication of the government-commissioned report by former World Bank economist Nicholas Stern, which is expected to warn climate change could reduce global economic output by up to 20 per cent each year.
