Environmental tax measures
Public Accounts Committee
Closed
Inquiry
Tax measures which have an environmental impact act alongside government’s wider environmental objectives. As these objectives have become more ambitious, the role of the tax system may become more important. HM Treasury’s 2020-21 review into funding the transition to a net zero greenhouse gas economy explicitly plans to “consider the …
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6
Recommendations
29
Conclusions
1
Report
1
Oral session
1
Letter
1
Event
Activity timeline 4 events
2 Sep
2021
2021
28 Apr
2021
2021
Report published
16 Apr
2021
2021
8 Mar
2021
2021
Oral evidence
Oral evidence sessions 1 session
8 Mar 2021
View on parliament.uk
Environmental tax measures
Beth Russell · HM Treasury
Jim Harra · HMRC
Ruth Stanier · HM Revenue and Customs
Sir Tom Scholar · HM Treasury
Reports 1 report · click to expand
| Title | HC No. | Published | Items | Response |
|---|---|---|---|---|
| Fifty-Fifth Report - Environmental tax measures | HC 937 | 28 Apr 2021 | 35 | Responded |
Recommendations & Conclusions
8 results
9
Conclusion
Accepted
Fifty-Fifth Report - Environmental…
HM Treasury told us that the final report will provide an analytical framework to consider...
HM Treasury told us that the final report will provide an analytical framework to consider the economic and fiscal costs of moving to net zero.16 HMRC said the final report would dovetail within a broader cross-government strategy on how to …
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Government Response
The government explains that HM Treasury is actively supporting environmental goals by conducting a Net Zero Review and is closely involved with BEIS in developing an overall Net Zero Strategy, ensuring tax options are considered.
HM Treasury
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11
Conclusion
Accepted
Fifty-Fifth Report - Environmental…
We asked whether by the time we get to COP 26 everybody will have a...
We asked whether by the time we get to COP 26 everybody will have a good idea of exactly how the government is going to meet its net carbon target by 2050. HM Treasury told us this was really a …
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Government Response
The government agrees with the committee's implicit recommendation that HM Treasury should aim to become an exemplar finance department in supporting government’s environmental goals like net zero, with a target implementation date of Autumn 2021.
HM Treasury
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17
Conclusion
Accepted
Fifty-Fifth Report - Environmental…
We raised the potential impacts of changes to taxes, to address the reduction in revenue...
We raised the potential impacts of changes to taxes, to address the reduction in revenue from fuel duty, on small and medium-sized businesses, on different regions and on the levelling-up agenda. HM Treasury said decisions on taxes, such as fuel …
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Government Response
The government acknowledges the fiscal implications of transitioning to net zero and the erosion of fuel duty revenue. It commits to ensuring motoring tax revenue keeps pace to fund public services and will undertake early and broad consultation with society on future plans.
HM Treasury
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25
Conclusion
Accepted
Fifty-Fifth Report - Environmental…
The NAO found that HMRC monitors tax receipts for the four environmental taxes it administers...
The NAO found that HMRC monitors tax receipts for the four environmental taxes it administers but it collects little other data to understand changes in behaviour.50 Monitoring Landfill Tax receipts enables HMRC to collect and report data on the volume …
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Government Response
The government agreed with the committee's Recommendation #5, which called for HMRC to ensure it has sufficient information to assess the impact of environmental taxes on behaviour, and set a target implementation date of Winter 2021.
HM Treasury
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26
Conclusion
Accepted
Fifty-Fifth Report - Environmental…
We asked HMRC what it had done to quantify the impact of Landfill Tax on...
We asked HMRC what it had done to quantify the impact of Landfill Tax on the exporting of waste and fly-tipping.52 HMRC said that it knew there is a risk that Landfill Tax will incentivise illegal dumping or exports, but …
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Government Response
The government states it agrees with the general importance of HMRC having sufficient information on environmental tax impacts, describing existing data usage and new evaluation mechanisms for taxes like the Plastic Packaging Tax, though not specifically detailing plans for quantifying Landfill Tax impacts on fly-tipping or exports mentioned in the conclusion.
HM Treasury
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28
Conclusion
Accepted
Fifty-Fifth Report - Environmental…
Evaluations can help the exchequer departments to understand whether environmental taxes are achieving their objectives...
Evaluations can help the exchequer departments to understand whether environmental taxes are achieving their objectives and how they are changing behaviour. However, since 2010 HMRC has evaluated only one of the four environmental taxes, in part because it has not …
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Government Response
The government agrees with the derived recommendation that HMRC should ensure it has sufficient information to assess environmental tax impacts, setting a target implementation date of Winter 2021. It highlights existing efforts and commits to further proportionate evaluation within HMRC's overarching approach.
HM Treasury
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29
Conclusion
Accepted
Fifty-Fifth Report - Environmental…
HMRC told us that it shared with this Committee and the NAO the ambition to...
HMRC told us that it shared with this Committee and the NAO the ambition to evaluate more tax measures. HMRC said it had therefore secured an additional £2 million for evaluation in 2021–22. In 2020–21, HMRC’s central budget for commissioning …
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Government Response
The government acknowledges the importance of evaluation and states that HMRC already uses various data sources and is building evaluation mechanisms into new taxes like the Plastic Packaging Tax, while further activity will be considered proportionally.
HM Treasury
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35
Conclusion
Accepted
Fifty-Fifth Report - Environmental…
The apparent lack of leadership and coordination on environmental tax measures, mirrors findings in our...
The apparent lack of leadership and coordination on environmental tax measures, mirrors findings in our recent reports examining how the government is organised to deliver environmental goals. In our February 2021 report, Achieving government’s long- term environmental goals, we found …
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Government Response
The government agrees with the implied recommendation to address coordination, setting an Autumn 2021 target. It highlights HM Treasury's active role, its ongoing Net Zero Review, and close involvement in the BEIS-led Net Zero Strategy, which will be published before COP26.
HM Treasury
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Correspondence 1 letter
16 Apr 2021
Correspondence from Tom Scholar, Permanent Secretary, HM Treasury, re Public Accounts Committee – Session of 8 March 2021, 24 March 2021
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