Green body lobbies for energy tax hit

The Green Fiscal Commission, an independent policy body, has recommended that the Government should triple fuel tax and impose hefty home energy taxes.

The Green Fiscal Commission, which includes representatives of all three main UK political parties, is to call on government to introduce these swingeing new taxes.

Considering that fuel tax accounts for almost 70% of the price of you pay for your fuel, the effect of tripling the road tax would be punitive. Meanwhile, hard pressed householders already reeling from fuel increases would be severely hit by home energy taxes.

And, of course, where would the effect of such a swingeing increases be felt most?

Yes, got it in one. Areas like North East Scotland:

  • Which are furthest from the main markets and where distances travelled are higher.
  • Where heating costs and consumption are higher than in the south.

We have already seen many businesses in this area go to the wall due to punishing transport costs. Any substantial increase imposed on our fuel costs, would be the death knell for many, many more.

There would be a huge irony in a fuel tax hike that would inevitably damage the competitiveness of the North Sea Oil and Gas industry, largely based in Aberdeen. Such damage could threaten the viability of the industry that supplies 70% of the UK’s prime energy!

The North of Scotland is also an area with some of the highest levels of fuel poverty.

In any case, would the Green Fiscal Commission not be better tackling really significant sources of pollution (ships, poor housing, industry and power generation) rather than going for the much less significant, but soft targets?

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