UK businesses and households could face increased taxes in the coming years to cover the cost of meeting the net-zero 2050 target, the Treasury Department warned
It comes after that Her Majesty’s Treasury published a cost review to net zero alongside the government’s official strategy on Tuesday.
The department said the cost of global inaction far exceeded the cost of action to combat climate change.
However, it had warned of “major fiscal consequences” from this transition.
It turned out that the effects on individual household finances could not be assessed as higher demands on public spending and a loss of tax revenues from fossil fuels such as UK fuel tax need to be addressed.
“If there is to be additional public spending, the government may need to consider changes to existing taxes and new revenue streams during the transition,” the review said.
This comes after Economy Minister Kwasi Kwarteng insisted there won’t be another nationwide lockdown An NHS leader warns the Prime Minister that “Plan B” Covid restrictions must be enforced immediately to prevent the country “stumbling into a winter crisis”.
However, the Treasury Department has argued that the alternative of borrowing to cover costs would be unfair for future generations.
In conversation with LBC, Secretary of Commerce Kwasi Kwarteng said: “I don’t think tax hikes are inevitable.
“If you look at how we have moved in this green transition over the past 10 years – 10 years ago 40 percent of our electricity came from coal and today it is one to two percent – renewable energies have most of it accepted this difference and the costs have actually not increased during this time.
“I think the green revolution is a huge opportunity for people all over the world to invest.”
Then he said, “What? [the Treasury’s] The proposed modeling did not take into account the actual investments we will attract in new technologies. “
It comes after conservative MP Craig Mackinlay said LBC’s Iain Dale “the cost is really huge” when it comes to retrofitting UK homes.
He said the calculations would bring the cost to “over £ 30,000 per household,” which equates to roughly £ 960 billion for the taxpayer.
British Secretary of Commerce Gregor hands told the House of Commons on Tuesday that the strategy would have the potential to support up to 440,000 jobs in many different sectors and unlock £ 90 billion in private investment.
The government released the long-awaited net zero strategy ahead of the COP26 climate talks that the UK is slated to host later this month.
This came after Bank of England Governor Andrew Bailey said he continued to believe the recent surge in inflation was temporary. The Governor of the Bank of England has warned that he “must act” to contain rising inflation in the UK, a new signal that it is preparing for a rate hike.
The strategy outlined plans to meet legal targets to bring emissions to net zero by 2050, reduce pollution as much as possible, and take measures such as creating forests to remove remaining pollution.
prime minister Boris Johnson said: “The UK’s path to ending our contribution to climate change will be paved with well-paying jobs, billions in investments and thriving green industries that are fueling our green industrial revolution across the country.
“By coming first and taking bold action, we will build a critical competitive advantage in electric vehicles, offshore wind, carbon capture technology and more, while helping people and businesses along the way.
“With the big climate summit COP26 Just around the corner, our strategy is an example for other countries to build greener again as we lead the course towards global net zero. “