Defra statement on budget 2002
003/02
17 April 2002
DEFRA Secretary of State Margaret Beckett said: "Today's announcement by the Chancellor Gordon Brown is a welcome budget for the whole of the Department for Environment, Food and Rural Affairs. It ranges from action on public services, which are at the heart of our rural agenda, to the extension of support for new energy efficient technologies through the Green Technology Challenge.
Budget 2002 marks further progress in achieving DEFRA's core aim of social, economic and environmental sustainable development."
The measures announced today should be seen against the background of announcements since the pre-Budget Report which further the aim of sustainable development, such as the world's first economy-wide greenhouse gas trading scheme, the Government's commitment to take forward the report of the Policy Commission on Farming and Food, the national review of UK energy policy and the award of grants under the Development Fund for Rural Renewal.
The Budget measures include:
- Exemption of good quality combined heat and power generation from the climate change levy and extension of the VAT concession to micro-CHP - both boosts to CHP preparatory to consultation on the national strategy.
- Additional support for energy efficiency and its contribution to the UK Climate Change programme from an extension of the successful Green Technology Challenge scheme to cover new technologies; exemption from the climate change levy for conversion of coal methane; and reduction in VAT on energy saving equipment in the homes of the less well off and the elderly.
- Introduction of the new environmental levy on aggregate extraction is confirmed from April 1 this year, as is the link with funding worth about £35 million a year, to support the aims of the levy.
- A series of initiatives in support of green transport policy confirming the reduction in duty for biodiesel and making proposals for future concessions to support sulphur-free fuels and hydrogen, rebanding of fuel scale charges for company cars, and a reduction in vehicle excise duty on motor cycles and low emission vans and cars. Distance-based road charging for lorries confirmed for the future.
- A commitment to the UK's target reduction in the dumping of waste through significant future increases in the landfill tax and consultation on how better to target the landfill tax fund to meet waste management objectives.
- Help for small businesses, including a cut in Companies Tax and a new zero start rate for small firms.
- A specific excise duty reduction on beer produced by small breweries, the majority of which are located in rural areas, which will benefit village pubs.
- Excise duty on beer, wine and spirits is frozen for another year.
- A commitment to work with industry on a joint strategy to help trace and track illegal consignments of spirits - a pre-budget proposal to introduce "tax stamp" on bottles of spirits is not being pursued as the Government does not currently consider the costs to be proportionate to the benefits.
- A tax break for employer-subsidised bus services which will also benefit those who work in rural areas.
Overall, the Budget rightly focuses on the delivery and funding of public services such as health care and education, economic stability, support for those on lower incomes and the promotion of enterprise. Consistent high quality public services are central to DEFRA's rationale, and are right at the heart of our rural agenda, as are the issues of low incomes, economic stability and promotion of enterprise.
Page published: 17 April 2002