(11 years, 7 months ago)
Written StatementsThis Government are reforming the tax system to make it more competitive, simpler, fairer, and greener. As part of this, in May 2010 Government committed to increasing the proportion of tax revenue accounted for by environmental taxes.
Last summer, the Government published their definition of environmental taxes which set the baseline for achieving that commitment. This statement provides an update of the Government’s progress against that commitment, using the independent OBR forecasts published alongside the Budget. To provide greater clarity the Government will also publish similar summaries of progress each year until the end of this Parliament.
The Government classify environmental taxes as those that meet all of the following three principles:
The tax is explicitly linked to the Government’s environmental objectives;
The primary objective of the tax is to encourage environmentally positive behaviour change; and
The tax is structured in relation to environmental objectives (for example: the more polluting the behaviour, the greater the tax levied).
The Government have defined the following as environmental taxes based on these principles:
Climate Change Levy
Aggregates Levy
Landfill Tax
EU Emissions Trading System (EU ETS)
Carbon Reduction Commitment Energy Efficiency Scheme
Carbon Price Floor
The OBR forecasts demonstrate that the coalition remains on track to achieve its commitment to increase the proportion of revenue accounted for by environmental taxes.
Tax | Actual Revenue Raise 2010/11 | Actual Revenue Raise 2011/12 | Revenue forecast 2012/13 | Revenue forecast 2013/14 | Revenue forecast 2014/15 | Revenue forecast 2015/16 | Revenue forecast 2016/17 | Revenue forecast 2017/18 |
---|---|---|---|---|---|---|---|---|
Climate Change Levy and Carbon Price Floor | £0.7 bn | £0.7 bn | £0.6 bn | £0.3 bn | £1.9 bn | £2.4 bn | £2.5 bn | £2.5 bn |
Aggregate Levy | £0.3 bn | £0.3 bn | £0.3 bn | £0.3 bn | £0.3 bn | £0.3 bn | £0.3 bn | £0.3 bn |
Landfill Tax | £1.1 bn | £1.1 bn | £1.1 bn | £1.0 bn | £1.1 bn | £1.2 bn | £1.1 bn | £1.2 bn |
EU ETS | £0.5 bn | £0.2 bn | £0.3 bn | £0.7 bn | £0.7 bn | £0.8 bn | £0.8 bn | £0.9 bn |
Carbon Reduction Commitment | £0.0 bn | £0.7 bn | £0.7 bn | £0.7 bn | £0.9 bn | £0.9 bn | £1.0 bn | £1.0 bn |
Total | £2.5 bn | £3.0 bn | £3.1 bn | £4.0 bn | £4.9 bn | £5.6 bn | £5.7 bn | £5.9 bn |
2010/11 | 2011/12 | 2012/13 | 2013/14 | 2014/15 | 2015/16 | 2016/17 | 2017/18 | |
---|---|---|---|---|---|---|---|---|
Total Revenue from Environmental Taxes | £2.5 bn | £3.0 bn | £3.1 bn | £4.0 bn | £4.9 bn | £5.6 bn | £5.7 bn | £5.9 bn |
Total Tax Forecast Receipts | £551.4 bn | £572.6 bn | £586.8 bn | £612.4 bn | £633.1 bn | £657.6 bn | £694.1 bn | £723.0 bn |
Proportion of Total Tax Receipts | £0.5 bn | £0.5 bn | £0.5 bn | £0.7 bn | £0.8 bn | £0.8 bn | £0.8 bn | £0.8 bn |