Greenhouse Gas Emissions: Tax Strategy

Lord Tunnicliffe Excerpts

Tuesday 6th July 2021 Lords Chamber

[Baroness Penn (Con)]

My Lords, the Government will respond to the Climate Change Committee’s report by October, as they are obliged to. They have, in fact, already responded to the PAC recommendations. While the Government have taken on a number of those recommendations, they disagreed with that specific one. We recognise the importance of considering the impact of tax on environmental measures and make those assessments where relevant. However, we think that the recommendation may constrain the Government and place undue burdens. For example, in looking at income tax thresholds or national insurance tax rates, those environmental considerations would not be proportionate or relevant.

[Lord Tunnicliffe (Lab) [V]]

My Lords, the Treasury promised a net-zero review on 2 November 2019. It said that this review would cover

“how the transition to net zero will be funded”

and

“consider the full range of government levers, including tax.”

It was to be published “in autumn 2020”—seven months ago. In June 2021, the Climate Change Committee recommended that the Treasury

“Complete the overdue Net Zero Review”.


On 22 June 2021, the shadow Chancellor asked Rishi Sunak twice when the review would be published. The best she got was “imminently”. I looked up what “imminent” means. It means “coming or likely to happen very soon”. Surely that assurance given two weeks ago must mean now. Sadly, I heard the Minister say “later” earlier in her answers. Does she agree that the Treasury’s net-zero review is crucial to tackling the climate change emergency? When will it be published? Surely it should be now.