Fifty-Fifth Report - Environmental tax measures

Select Committee
Public Accounts Committee HC 937 28 April 2021
Report Status Government responded
Conclusions & Recommendations 35 items (6 recs)
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Government Response (AI assessment · 34 of 35 classified)
Accepted 8
Accepted in Part 5
Acknowledged 3
Deferred 2
Not Addressed 7
Rejected 9
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
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Recommendations & Conclusions

9 results
12 Conclusion Rejected
HM Treasury’s December 2020 interim report on net zero said that “the transition to net...
Conclusion
HM Treasury’s December 2020 interim report on net zero said that “the transition to net zero and consequent structural changes in the economy will also have implications for the UK’s public finances and fiscal sustainability. As some sectors grow and … Read more
Government Response Summary
The government disagrees with the committee's implicit recommendation to set out a timetable for the replacement of fuel duty revenues before the next Budget, stating it would pre-empt policy decisions.
HM Treasury
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13 Conclusion Rejected
The transition to cleaner vehicles in the UK will reduce the demand for petrol and...
Conclusion
The transition to cleaner vehicles in the UK will reduce the demand for petrol and diesel and thus affect the amount of fuel duty raised. In November 2020, government announced its ambition to stop the sale of new cars that … Read more
Government Response Summary
The government disagrees with setting a timetable before the next Budget for replacing fuel duty revenues, stating it would pre-empt policy decisions, although it acknowledges the need to consider implications for tax revenue from net zero.
HM Treasury
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14 Conclusion Rejected
We asked what planning HM Treasury had undertaken to counteract the reduction in revenue from...
Conclusion
We asked what planning HM Treasury had undertaken to counteract the reduction in revenue from taxes on fossil fuels and greenhouse gases. It said that the government did not have a plan, but the reduction in revenue had been flagged … Read more
Government Response Summary
The government rejects the implied recommendation to set out a timetable for replacing fuel duty revenues before the next Budget, stating it would pre-empt ministerial policy decisions. It agrees on the need to consider revenue implications and set out a plan over time.
HM Treasury
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18 Conclusion Rejected
The March 2021 Budget took place the week before our session with HM Treasury and...
Conclusion
The March 2021 Budget took place the week before our session with HM Treasury and HMRC on environmental tax measures. The Budget did not include any particular announcements on green taxes. It did however freeze fuel duty rates for the … Read more
Government Response Summary
The government disagrees with setting a timetable for consulting on options for replacing declining fossil fuel revenues before the next Budget, stating it would pre-empt policy decisions, but acknowledges the need to plan for consultation in the future.
HM Treasury
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22 Conclusion Rejected
The exchequer departments define ‘environmental taxes’ as those with explicit environmental objectives.40 There are currently...
Conclusion
The exchequer departments define ‘environmental taxes’ as those with explicit environmental objectives.40 There are currently four that meet this definition (paragraph 17).41 Other taxes can have environmental impacts. Indeed the 2021 Dasgupta Review on the Economics of Biodiversity (commissioned by … Read more
Government Response Summary
The government disagrees with the recommendation to assess and publish the environmental impact of every tax change from Budget 2022, citing impracticality and cost, but affirms it already carefully considers environmental implications for relevant measures.
HM Treasury
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23 Conclusion Rejected
The March 2021 Budget does not include any new tax measures with environmental objectives but...
Conclusion
The March 2021 Budget does not include any new tax measures with environmental objectives but it does include other tax measures that are likely to have an environmental impact.44 In March 2021 the Office for Budget Responsibility (OBR) said the … Read more
Government Response Summary
The government rejects the implied recommendation to assess the environmental impact of every tax change, stating it would be impractical and not cost-effective. It clarifies that environmental implications are already considered for relevant measures, citing examples like red diesel and plastic packaging tax.
HM Treasury
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30 Conclusion Rejected
As we explain in Part One, the Department for Environment, Food & Rural Affairs (Defra)...
Conclusion
As we explain in Part One, the Department for Environment, Food & Rural Affairs (Defra) has lead responsibility for all environmental policy areas, apart from climate change mitigation on which the Department for Business, Energy & Industrial Strategy (BEIS) leads. … Read more
Government Response Summary
The government rejects the recommendation for exchequer departments to describe tax impacts on other departments' environmental responsibilities and agree robust assessment approaches, arguing it could constrain ministerial decisions on publications, but states it will consider next steps for internal assessment.
HM Treasury
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31 Conclusion Rejected
The NAO found that some recent environmental strategies mentioned tax measures which have an impact...
Conclusion
The NAO found that some recent environmental strategies mentioned tax measures which have an impact on government’s environmental goals, and some of these strategies included a brief consideration of the impact of tax measures or their interaction with other policy … Read more
Government Response Summary
The government rejects the recommendation for exchequer departments to describe tax impacts on other departments' environmental responsibilities and agree robust assessment approaches, arguing it could constrain ministerial decisions on publications, but states it will consider next steps for internal assessment.
HM Treasury
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33 Conclusion Rejected
HMRC expressed the opinion that Landfill Tax “needs to be complemented by regulation and effective...
Conclusion
HMRC expressed the opinion that Landfill Tax “needs to be complemented by regulation and effective enforcement of that regulation” to deal with the negative 58 Q 74; C&AG’s Report, para 1.33 59 C&AG’s Report, para 3 60 C&AG, Reducing carbon … Read more
Government Response Summary
The government rejects the recommendation for exchequer departments to describe tax impacts on other departments' environmental responsibilities and agree robust assessment approaches, arguing it could constrain ministerial decisions on publications, but states it will consider next steps for internal assessment.
HM Treasury
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