Green party

UK's first ever 'carbon costed' budget

19 March 2007

Green Party Principal Speaker Dr. Derek Wall today unveils a budget that takes climate change seriously, presenting the first ever budget of it's kind - a Carbon Costed budget.

Dr. Wall said "This is a budget for the planet, for real prosperity, for justice and above all, a budget to deal with climate change."

"The Green Party believes we need to reduce the UK's emissions by around 90 per cent by 2050, to have a fighting change of staving off devastating climate change.

"This means annual reductions in the region of 6 - 9 per cent.

"Our Carbon Costed budget does just that, presenting a package of measures that will save the UK 7.5 per cent of carbon dioxide emissons in 2007/2008.

"We are the only party prepared to accept that ecological factors mean that infinite growth is impossible on a finite planet, and to come up with practical policy measures to deal with that reality.

"We are also the only party to recognise the truly radical cuts required to our emissions."

The Party's budget makes various proposals, estimates the budget effect in 2007/2008 and also estimates the net carbon dioxide emissions reductions that would follow.

Please see below an outline of the measures proposed. The full carbon costed budget outline can be read online at: www.greenparty.org.uk

and Dr. Wall's budget address can be viewed at: elgar.greenparty.org.uk

Green budget - count the carbon as well as the cash:

  • Package of measures will save 7.5 per cent of carbon dioxide emissions in 2007/8
  • Taxes on carbon-intensive activities to be spent on environmental measures and VAT reduction
  • Cut in basic rate of VAT gives £14bn back - almost £250 each, including children
  • Worst gas guzzlers to pay £1800 tax disc, raising £8bn
  • Restoration of fuel duty escalator means cost of petrol will be £1.07 per litre this year, cutting emissions by 3 per cent
  • £3bn to be spent this year on more buses and cheaper rail fares
  • Air Passenger Duty raised to £100 - cuts total emissions by 1 per cent
  • Climate Change Levy paid by businesses to double - saving 2 per cent of carbon emissions
  • £500 million boost for renewable energy grants - saving 1 per cent of emissions with cleaner electricity
  • Standard rate of VAT cut from 17.5 per cent to 15 per cent
  • Money raised from new 60 per cent income tax for income over £100,000 to be spent on children, pensioners and affordable housing
  • Cheaper meals out, hotels and entertainments - VAT reduced to 5 per cent to boost tourism within the UK
  • £12bn to be raised by taxing incomes above £100,000 at 60 per cent
  • Old age pension to rise 19 per cent to £100 per week
  • Child Benefit increased by £5 per week for each child
  • £1.5bn more to be spent on more social housing
  • Means testing for personal care for the elderly to end
  • 60 per cent more to be spent on recycling
  • Council Tax rises curbed: Government grants to local authorities to be increased by £2.4bn
Green Party Female Principal Speaker has also written a reaction to the budget.

To read Sian Berry's searing analysis in the New Statesman, go to www.newstatesman.com