Thursday 13 March 2008

Darling, It's Too Little Too Late

Chancellor Alistair Darling unveiled his first budget yesterday, however, many environmental groups have called on the inadequacy for environmental protection contained within the announcement.

The key announcements contained in the budget are;

Environment
  • 2p increase in fuel duty is postponed until October this year, and rise by 0.5p per litre in real terms in 2010
  • £950 "showroom" tax from April 2010 for the most polluting vehicles
  • £800 million environment fund to work with the United States, Japan and other countries as well as the World Bank to fund clean technologies in developing countries
  • First Carbon budgets to 2022 will be announced alongside the Budget next year
  • Energy Bill will allow the tripling of renewable electricity by 2015
  • Introduce legislation to impose a charge on single-use plastic bags, if we have not seen sufficient progress on a voluntary basis. Legislation would come into force in 2009 and based on other countries' experience, it could lead to a 90 percent reduction, with around 12 billion fewer plastic bags in circulation. The money raised should go to environmental charities
  • Cavity wall insulation for nearly three million homes. Loft insulation, more energy efficient appliances and light bulbs
  • £26 million funding next year for a Green Homes Service to help people cut their carbon emissions and their fuel bills
  • Smart meters to medium and large companies over the next five years
  • Non-domestic buildings will become zero-carbon from 2019
  • Biofuel duty differential will be replaced by the Renewable Transport Fuel Obligation
  • Reforming capital allowances for business cars to increase the incentive to move to lower emitting cars
  • Air passenger duty scrapped in favour of flight tax

Energy
  • Increase in Social Energy Tariff from Energy Companies to £150m, up from £50m
  • 5m Customers on PrePay Meters to be given fairer Energy Pricing
  • Increase in Winter fuel payment for over 60s from £200 to £250 and for the over 80s from £300 to £400

Whilst some of the efforts of the chancellor are certainly welcomed, it is a disappointment that he has not chosen to implement these changes immediately, with some measures not being introduced for over two years.

The additional resources for improving energy efficiency in homes and business and increased revenue for the Green Homes Service provided by the Energy Saving Trust will also assist reduce energy use. However with the assistance provided to those on social energy tariffs and Winter fuel payments, energy use may increase. I believe that to ensure that these are paid or reductions given to the householder, they must have had a free home energy inspection. This will highlight the need for loft and / or cavity wall insulation or other energy saving methods, those who meet specific criteria should (as already happens) have these installed for free, those that do not fall into these categories should have the measures installed for free in place of the fuel payment.

I hope the threat to impose charges on plastic bags is followed through as this is what is needed to dissuade their use to levels which otherwise through voluntary methods would be unattainable.

What do you think about the budget?

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