Green budget a little grey, says accountants James Cowper
Alastair Darling’s Budget delivered last week included some headline grabbing green measures, such as the car scrappage scheme, but is more grey than green when it comes to tacking climate change, says Thames Valley accountants and business advisers James Cowper.
Paddy Thompson, a senior manager at James Cowper who works with a number of entrepreneurial businesses working in the waste management community, said: “This budget, whilst including some welcome measures, can largely been seen as a wasted opportunity when it comes to tackling climate change. The government does not appear to recognise the opportunity presented by this recession to accelerate the decarbonisation of the economy.”
Comment on Landfill tax
The government in this Budget announced that landfill tax will continue to increase by £8 per tonne until 2013. This means that tax on waste sent to landfill, now £40 per tonne, will increase to £72 per tonne.
Thompson adds: “When you add to this the charge of typically £25 per tonne made by the owners/operators of land fill sites the cost of waste going to landfill will approach £100 per tonne.
“The landfill tax has to date been largely beneficial in that it has encouraged growth in the waste to energy technology sector, with the UK boasting some of the world’s most innovative companies. However, if the tax continues to rise at this rate it will inevitably lead to undesirable consequences, namely an increase in fly-tipping.
“We would urge the government to cap landfill tax at somewhere between £50 and £60 per tonne.”
Comment on incentives for renewable heat
“The government has already outlined incentives for renewable heat generation due to come into effect from 2011,” says Thompson. “We are however very disappointed that the Chancellor did not use this opportunity to bring forward these incentives. This would be of enormous help in encouraging zero-carbon schemes now rather than in 2016.”
Comment on car scrappage scheme
“The Chancellor is wrong to make any claims that this scheme has environmental benefits,” says Thompson. “It is not a green scheme at all.
“The government has yet to sign-up the car manufacturers to this scheme and much of the detail has yet to be finalised. I would urge the government to direct this scheme at low emission cars, namely those that meet the EU’s 130 grams per kilometre benchmark.”
“Overall, this Budget did deliver some positive green measures,” concludes Thompson, “and it is better that the government did something rather than nothing at all. But it is a real shame that Alastair Darling did not go further.”
Paddy Thompson , Senior Manager, James Cowper LLP, Tel: 0118 9551064 or email: paddythompson@jamescowper.co.uk
27.04.2009