A green tax roadmap for the future
Think tank: Green Alliance
Author(s): Zoe Avison
November 23, 2022
This report from UK think tank Green Alliance looks at a tax road map for how the tax system can support a net zero economy.
The UK has committed to net zero by 2050. Although this will address climate change, it is well understood that the transition will also increase the country’s energy and resource security, create new industries and, on balance, save businesses and people money. But our tax system is outdated, geared around a high carbon economy and, in many cases, actively discouraging people from making sustainable choices. And, as fossil fuels are phased out, the revenue from some taxes, for example fuel duty, will fall, creating fiscal black holes. Taxes must change and adapt to a decarbonised world and can be used to support other policy measures. A tax system adjusted for the new economic circumstances would encourage sustainable behaviours and maintain a stable income for the public purse. This report calls for the chancellor of the exchequer to publish a tax road map outlining how the tax system will support a net zero economy.