Oral question asked in the House of Commons, by Julia Goldsworthy (Liberal Democrat). It was answered on Thursday, 15 June 2006 on behalf of the Treasury.

Climate Change (Taxation)

Question: Does the Minister consider it appropriate that revenues from green taxes as a proportion of the total tax take have fallen while emissions continue to rise?

Answer: The hon. Lady, typically for a Liberal, takes a simplistic view. I have two things to say to her. First, the point of environmental taxation is not, contrary to the Liberals’ view, taxation for taxation’s sake: it is about the change in behaviour and opinion that those taxes can achieve. It is wrong to look at taxation simply in terms of the total tax receipts, because environmental taxes can influence behaviour and lead to a reduction in receipts. Environmental taxes can be used, as can discounts for biofuels and climate change agreements, to achieve significant environmental ends without raising the environmental tax take. Secondly, as the hon. Lady looks at the big black hole in her spending and tax plans and the £8 billion of environmental taxes that she would impose on people, I urge her to take a more sophisticated view, and we look forward to her plans in future.

Secondary information

Type: Oral question
Reference: 447 c888
Session: 2005-06
Oral question type: Supplementary
Chamber / Committee: House of Commons chamber
Subjects: Climate change levy Air pollution Climate change Carbon Pollution control Taxation
Link: View this Oral question on www.publications.parliament.uk