Fifty-Fifth Report - Environmental tax measures
Select Committee
Public Accounts Committee
HC 937
28 April 2021
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Fifty-fifth report from Session 2019-21 · published 2 Sep 2021
Recommendations & Conclusions
8 results
9
Conclusion
Accepted
HM Treasury told us that the final report will provide an analytical framework to consider...
Conclusion
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 Summary
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
We asked whether by the time we get to COP 26 everybody will have a...
Conclusion
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 Summary
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.
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17
Conclusion
Accepted
We raised the potential impacts of changes to taxes, to address the reduction in revenue...
Conclusion
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 Summary
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
The NAO found that HMRC monitors tax receipts for the four environmental taxes it administers...
Conclusion
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 Summary
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.
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26
Conclusion
Accepted
We asked HMRC what it had done to quantify the impact of Landfill Tax on...
Conclusion
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 Summary
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.
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28
Conclusion
Accepted
Evaluations can help the exchequer departments to understand whether environmental taxes are achieving their objectives...
Conclusion
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 Summary
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
HMRC told us that it shared with this Committee and the NAO the ambition to...
Conclusion
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 Summary
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.
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35
Conclusion
Accepted
The apparent lack of leadership and coordination on environmental tax measures, mirrors findings in our...
Conclusion
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 Summary
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.
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