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
5 results
5
Recommendation
Accepted in Part
HMRC has not done enough to evaluate how tax measures with environmental objectives have changed...
Recommendation
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 …
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Government Response Summary
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
The UK is hosting the 26th UN Climate Change Conference of the Parties (COP26) in...
Conclusion
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 …
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Government Response Summary
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
When we asked HM Treasury whether the tax system would have a role to play...
Conclusion
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 …
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Government Response Summary
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
If Parliament is to be able to effectively scrutinise the environmental impact of tax changes...
Conclusion
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 …
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Government Response Summary
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
We also asked about the impact of the Carbon Price Support on the amount of...
Conclusion
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 …
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Government Response Summary
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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