The Government's green watchdog has accused the Treasury of failing to address its concerns over environmental taxation.
Last July, the Environmental Audit Committee urged ministers to adopt a coherent strategy for so-called green taxes – setting out a rationale, clear objectives and how this will be evaluated.
It called for a definition of what is meant by an environmental tax, but the Government’s response to the MPs' report – published today – fails to provide one.
The Treasury also fails to commit to ring-fencing a portion of fuel duty receipts for investment in low-carbon alternatives. It suggested fuel duty was not an environmental tax, despite the Office for National Statistics suggesting otherwise.
Committee chair, Joan Walley, said: 'The Government has taken nearly seven months to respond to our report, which is an unacceptable delay. It is also unacceptable, after such a long interval, to provide an incomplete response, which does not address our pivotal recommendation for clarity about what constitutes an 'environmental tax' and the need for an environmental taxation strategy.
'Such a strategy is vital to bring clarity about what constitutes an environmental tax, the effect the tax seeks to bring about and its rationale, how the Government will deliver an increasing proportion of environmental taxation, and how the revenues compare against the environmental harm they seek to tackle.'
