Green economy: MPs warn over lack of plan to manage fossil fuel tax loss | Cop26: Glasgow climate change conference 2021 | The Guardian
PA Media Wed 28 Apr 2021
The Treasury cannot explain how it will manage declines in tax revenues worth £37bn from fossil fuels as the UK shifts to a clean economy, MPs have warned.
Meeting the net zero goal to curb global temperature rises and tackle the climate crisis requires cutting emissions as close to zero as possible and offsetting any remaining pollution with steps such as planting trees.
It will mean significant shifts in how people live their lives in the next few years, including ending sales of new petrol and diesel cars by 2030 and shifting to electric vehicles – which will eat into the £28bn a year in fuel duty revenues.
The committee said the Treasury had told the MPs the government did not have a plan for the reduction in tax revenue on fossil fuels and greenhouse gases, which, in addition to fuel duty, includes £9bn of other taxes.