---

Energy: Low Carbon Transition Plan

My Lords, this Statement is a step forward in the Government putting their cards on the table. We must all do our homework and look especially at the annexe. I have some sympathy with the question raised by the noble and learned Lord, Lord Mackay of Clashfern, in this respect. During the passage of the Climate Change Bill, six or nine months ago, my noble friend Lord Rooker indicated that there was a debate to be had about hypothecation of carbon budgets in the traditional financial sense of the word "budget". I suppose that if you say carbon is £30 per tonne, you can make corresponding money tables to these tables. Hypothecation will be an important question. If people are going to pay more petrol tax and more for a lot of other things—the price mechanism is the main way to change people’s behaviour—they will want to know that it is not regressive. Indeed, the Government have committed to that. How are we going to ensure that people know that the Treasury will not just use the money for something else and that the Treasury is half way to agreeing the principle of hypothecation? Would my noble friend care to comment?