Benn welcomes Budget 2008
The Chancellor today set out the 2008 Budget which includes measures to tackle climate change, the most serious and pressing environmental challenge the world faces. Setting out new policies to reduce emissions across all major sectors of the economy, this Budget will ensure the UK continues to lead the climate change agenda internationally while the government continues to take action to protect the UK's natural environment.
Following the Budget statement, Hilary Benn said:
"This Budget demonstrates how seriously the Government takes the environment, with clear incentives for action, for example the new vehicle excise duty bands and charges for plastic bags, and measures to reduce emissions, for example zero carbon new commercial buildings."
The green finance measures in the Budget include:
- laying the ground work for the introduction of five-year carbon budgets;
- reform of car vehicle excise duty rates and bandings including the introduction of new bands from 2009 to reward drivers of the cleanest cars, and higher first year rates in 2010-11 to influence purchasing choices;
- the planned fuel duty increase of 2 pence per litre in April 2008 will be delayed until 1 October 2008. Main road fuel duty rates will rise by 1.84 pence per litre on 1 April 2009, and will increase by 0.5 pence per litre above inflation on 1 April 2010;
- auctioning 100 per cent of allowances for large electricity producers in Phase III of the EU Emissions Trading Scheme;
- funding for the Green Homes Service to advise consumers on how to reduce carbon emissions, waste and water consumption;
- strengthening the environmental incentives for taxation of business cars, along with simplifying measures;
- incentivising only the most sustainable biofuels, by shifting support away from the duty differential to the Renewable Transport Fuel Obligation in future years;
- increasing climate change levy rates in line with inflation, in order to maintain the environmental incentive effect;
- strengthening the environmental signal through taxation, forecast tax revenues from the new per plane duty, due to replace air passenger duty on 1 November 2009;
- an ambition for all new non-domestic buildings to be zero carbon from 2019 with consultation on the timeline and its feasibility and new public sector buildings from 2018;
- extending the Stamp Duty Land Tax exemption from zero carbon homes to new flats, retrospectively from 1 October 2007;
- Government legislatation and the imposition of charges if retailers do not take voluntary action to eliminate single-use carrier bags; and
- increasing the aggregates levy from 1 April 2009 to maintain its environmental impact.
Further information
- The Budget document, including the full report, speech and press notices can be viewed at http://hm-treasury.gov.uk
- Defra's website contains information on carrier bags, the EU Emissions Trading Scheme, climate change levy, Climate Change Bill, biofuels and energy services.
Page published: 12 March 2008