Earlier this week the environmental think tank Green Alliance released a report showing that the progress towards low carbon in the UK could also decrease national debt.  The report, commissioned by WWF-UK, Greenpeace and the RSPB, suggests that £12 billion could be cut through a combination of spending cuts and abolition of tax allowances (in sectors currently supporting growth in carbon emissions).

WWF-UK Head of Campaigns, David Norman, hailed the report as “a grown up response” to the hole in the country’s finances and the resulting pressure that will inevitably be seen on proposed environmental measures.  He commented that the report “demonstrates that with a clear vision and sense of purpose the UK can move toward a low-carbon economy without profligate spending. Not to do so would cost us too much in the long run.”

Within the report, suggestions are presented that highlight the potential double-savings in carbon and budget were the government to cut back on current spend and tax allowances for certain industries.  The key examples comprising a potential £12 billion saving as claimed by the Green Alliance are;
-    a two year moratorium on road expansion, saving £2.4bn over two years;
-    the roads budget could be cut by a further £2.8bn once the appraisal methodology was reformed;
-    abolishing allowances against Petroleum Revenue Tax and the Climate Change Levy could save £2.9bn;
-    abolishing zero-rating of VAT for aircraft and ships could save £2.2bn.
-    reducing public sector energy and fuel consumption might save £1.5bn over four years, especially if the Ministry of Defence can also cut some of the costs of the logistics of transporting and protecting its fuel supplies;

Dr Doug Parr, Greenpeace Chief Scientist, called on major political parties to take the report seriously given its potential impact on both cutting the UK deficit and national carbon emissions, saying “they would be reckless to ignore this new report”.  He continued, “We’ve got to stop handing out millions in tax breaks to the airline industry and approving roads instead of cleaner alternatives.  Britain can be a world leader in renewable technologies and low carbon transport, but only if we stop bailing out the dirty industries of the 20th century.”


Report: “Cutting back on carbon spending” by the Green Alliance think tank.