Environmental tax measures

Public Accounts Committee Closed Inquiry
Opened: 1 Feb 2021 Closed: 28 Jun 2021 Parliament page
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 … Read more
6 Recommendations
29 Conclusions
1 Report
1 Oral session
1 Letter
1 Event
Activity timeline 4 events
2 Sep
2021
Report published
28 Apr
2021
Report published
16 Apr
2021
Correspondence
8 Mar
2021
Oral evidence
Oral evidence sessions 1 session
8 Mar 2021
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Environmental tax measures
Beth Russell · HM Treasury Jim Harra · HMRC Ruth Stanier · HM Revenue and Customs Sir Tom Scholar · HM Treasury
Title HC No. Published Items Response
Fifty-Fifth Report - Environmental tax measures HC 937 28 Apr 2021 35 Responded
Recommendations & Conclusions
5 results
Clear
5 Recommendation Accepted in Part
Fifty-Fifth Report - Environmental…
HMRC has not done enough to evaluate how tax measures with environmental objectives have changed...
HMRC has not done enough to evaluate how tax measures with environmental objectives have changed behaviour. HMRC’s monitoring of environmental taxes focuses on tax revenue, but this is not sufficient on its own. For example, falling tax receipts may mean … Read more
Government Response
The government agrees with the recommendation for HMRC to ensure sufficient information on environmental tax impacts and sets a target implementation date of Winter 2021. However, it highlights existing data usage, ongoing development for the Plastic Packaging Tax, and notes that further evaluation activity will be considered within an overarching, proportionate approach.
HM Treasury
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10 Conclusion Accepted in Part
Fifty-Fifth Report - Environmental…
The UK is hosting the 26th UN Climate Change Conference of the Parties (COP26) in...
The UK is hosting the 26th UN Climate Change Conference of the Parties (COP26) in Glasgow in November 2021. COP26 provides the opportunity for the UK to work with all countries and join forces with civil society, companies and people … Read more
Government Response
The government agrees with the recommendation for HM Treasury to set out a net zero vision, stating that BEIS will publish the comprehensive Net Zero Strategy. HMT will not publish a separate strategy but its Net Zero Review will update on how climate considerations are embedded within its own processes.
HM Treasury
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19 Conclusion Accepted in Part
Fifty-Fifth Report - Environmental…
When we asked HM Treasury whether the tax system would have a role to play...
When we asked HM Treasury whether the tax system would have a role to play in achieving net zero, it said the role of tax would evolve over time from Budget to Budget.35 However, HM Treasury also recognises that as … Read more
Government Response
The government agrees with the implied recommendation for long-term tax planning for net zero, committing to write to the Committee on the pros and cons of a roadmap by Autumn 2021. However, it notes reasons why a standalone tax roadmap may not be appropriate and defers decisions to Ministers.
HM Treasury
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24 Conclusion Accepted in Part
Fifty-Fifth Report - Environmental…
If Parliament is to be able to effectively scrutinise the environmental impact of tax changes...
If Parliament is to be able to effectively scrutinise the environmental impact of tax changes it needs good quality information. For each tax policy change, the exchequer departments publish a Tax Information and Impact Note (TIIN) explaining the objective of … Read more
Government Response
The government agrees with the recommendation that HMRC should have sufficient information. It states HMRC already uses various data sources and is building evaluation mechanisms into the Plastic Packaging Tax design, but notes that further activity will be considered within HMRC's broader evaluation approach.
HM Treasury
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27 Conclusion Accepted in Part
Fifty-Fifth Report - Environmental…
We also asked about the impact of the Carbon Price Support on the amount of...
We also asked about the impact of the Carbon Price Support on the amount of electricity the UK imports. The Carbon Price Support is levied on around 100 electricity generators located in Great Britain on the fossil fuels supplied to … Read more
Government Response
The government agrees with the recommendation that HMRC should ensure it has sufficient information to assess environmental tax impacts. It states HMRC already uses various data sources and is building evaluation mechanisms into the Plastic Packaging Tax design, but notes that further activity will be considered within HMRC's broader evaluation approach.
HM Treasury
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Government Response AI assessment · 34 of 6 classified
Accepted 8
Accepted in Part 5
Acknowledged 3
Deferred 2
Not Addressed 7
Rejected 9
Total 6 recs + 29 conclusions
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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