20 October 2021, 09:38 | Updated: October 20, 2021 10:50
UK households and businesses could see their taxes increased in the coming years to cover the cost of meeting the net zero target in 2050, the Treasury has warned.
It comes after the Treasury on Tuesday released a cost review to reach net zero, alongside the government’s strategy.
The ministry said the costs of global inaction significantly outweighed the costs of taking action to tackle climate change.
However, he warned of the “material tax consequences” of the transition.
He found that it was not possible to assess the impact on individual household finances, with higher demands on government spending and a loss of tax revenue from fossil fuels such as the fuel tax. to be processed.
“If there is to be additional public spending, the government may need to consider modifying existing taxes and new sources of revenue throughout the transition,” the review says.
However, the Treasury argued that the alternative of borrowing to cover costs would be rather unfair to future generations.
Read more: The zero net strategy “to support up to 440,000 jobs”, according to the Minister of Affairs
Read more: Conservative MP: the net zero plan of the government “of madness”
Speaking to Nick Ferrari of LBC, Business Secretary Kwasi Kwarteng said: âI don’t think tax hikes are inevitable.
“If you look at how we’ve evolved over the past 10 years in this green transition – 10 years ago 40 percent of our electricity came from coal and today that figure is one to two percent – energies renewables took up most of this difference and costs did not increase during that time in fact.
“I think the green ‘revolution’ is a huge opportunity for people to invest all over the world.”
He went on to explain: âWhat [the Treasury’s] the suggested modeling did not take into account the real investment that we will attract in the new technologies. “
It comes after Tory MP Craig Mackinlay told LBC’s Iain Dale that “the costs are really colossal” when it comes to renovating UK households.
He said the calculations bring the cost to “over Â£ 30,000 per household”, which adds up to around a Â£ 960bn bill to the taxpayer.
However, Business Secretary Greg Hands told the Commons on Tuesday that the strategy would be able to support up to 440,000 jobs in different sectors and unlock Â£ 90 billion in private investment.
Read more: “Gas boilers must be banned after 2025 to achieve net zero emissions” – International Energy Agency
The government has released the long-awaited net zero strategy ahead of the COP26 climate talks, which the UK is expected to host at the end of the month.
The strategy outlined plans to meet legal targets of reducing emissions to net zero by 2050, reducing pollution as much as possible and using measures such as creating forests to mop up what’s left.
Prime Minister Boris Johnson said: âThe UK’s path to ending our contribution to climate change will be paved with well-paying jobs, billions of investments and thriving green industries – fueling our green industrial revolution at across the country.
“By acting first and taking bold action, we will create a defining competitive advantage in electric vehicles, offshore wind, carbon capture technology and more, while supporting people and businesses throughout the journey. process.
“With the great COP26 climate summit fast approaching, our strategy sets an example for other countries to rebuild more environmentally as we lead the charge towards global net zero.”