Green Britain: Rishi Sunak told we need tax incentives to make green cars cheaper

Green Britain: Dale Vince discusses re-wilding campaign

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He also threw his weight behind the other key demand of our Green Britain Needs You crusade – greater protection of nature. Mr Dunne, chairman of the environmental audit committee, supported reducing VAT on repair services and products that contain reused or recycled materials, as well as on eco-upgrades to homes. He urged Chancellor Rishi Sunak to bring in tax incentives to make ultra-low emission cars, such as electric or hybrid ones, more affordable.

Mr Dunne also demanded “clear and ambitious statutory targets for the state of nature, waste minimisation, water quality and air quality” in the Environment Bill.

He said: “There are endless initiatives that can lead to a greener future and the Chancellor should use his upcoming Budget statement to start this. Boosting energy efficiency of homes by reducing VAT on retrofits can spur growth in lowcarbon manufacturing.”

Following Brexit, he said the Chancellor “will be the first who has absolute freedom to propose changes to the rates of VAT, or to remove certain goods and services from VAT altogether”.

He said: “What better opportunity to use this new flexibility than to reduce rates of VAT on repair services and reused or recycled materials, and to encourage low carbon technologies and energy efficiency improvements to our homes?

“The electric vehicle transition must be accelerated with further tax incentives. But a greener future hinges on the health of biodiversity and ecosystems. The economic recovery must not overlook nature recovery.”

He added: “Planning and infrastructure decisions must take into account the impact of nature, and piloting a new National Nature Service can protect wildlife while offering job opportunities.

“There will be no vaccine against runaway climate change. It is our responsibility now, using the opportunity of the economic recovery, to set the UK on track for Net Zero.”

Another top Tory urged Mr Sunak to make climate-friendly items VAT free. Lord Deben wrote in the Daily Express earlier this week: “The Government must make it easier to do the right thing and more expensive to trash nature or pollute our rivers and oceans.” 

Boris Johnson has committed to Net Zero by 2050, which entails eliminating greenhouse gas emissions or “offsetting” any remaining.

The Express has highlighted how the tax system discriminates against going green – and favours the continued use of fossil fuels. Solar panels can attract 20 percent VAT, but burning coal at home is subject to just a five percent tax penalty.

Our campaign, backed by green entrepreneur Dale Vince, wants Zero for Zero – zero VAT on products with zero or near-zero emissions – plus more space for nature.

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