19th March 2007

UK'S FIRST EVER CARBON COSTED BUDGET

The Green Party today unveils a budget that takes climate change seriously: presenting the first ever budget of it's kind - a Carbon Costed budget. See statements by Philip Booth and an article by Molly Scott Cato plus Derek Wall presenting the Green budget - click 'Read more'

See Derek Wall here

Cllr Philip Booth, Stroud District Green party spokesperson said "This is a budget for the planet, for real prosperity, for justice and above all, a budget to deal with climate change. The Green Party believes we need to reduce the UK's emissions by around 90 per cent by 2050, to have a fighting change of staving off devastating climate change."

Philip Booth, a Stroud District councillor said: "This means annual reductions in the region of 6 - 9 per cent. Our Carbon Costed budget does just that, presenting a package of measures that will save the UK 7.5 per cent of carbon dioxide emissons in 2007/2008. We are the only party prepared to accept that ecological factors mean that infinite growth is impossible on a finite planet, and to come up with practical policy measures to deal with that reality. We are also the only party to recognise the truly radical cuts required to our emissions."

The Party's budget makes various proposals, estimates the budget effect in 2007/2008 and also estimates the net carbon dioxide emissions reductions that would follow. Please see below an outline of the measures proposed.  The full carbon costed budget outline can be read online at:
http://www.greenparty.org.uk/files/reports/2007/Green_Party_Budget.pdf

Green Party Principal Speaker Dr. Derek Wall budget address can be viewed at:
http://elgar.greenparty.org.uk/budget.mov

Green budget - count the carbon as well as the cash:
 
 • Package of measures will save 7.5 per cent of carbon dioxide emissions in 2007/8
• Taxes on carbon-intensive activities to be spent on environmental measures and VAT reduction
• Cut in basic rate of VAT gives £14bn back – almost £250 each, including children
• Worst gas guzzlers to pay £1800 tax disc, raising £8bn
• Restoration of fuel duty escalator means cost of petrol will be £1.07 per litre this year, cutting emissions by 3 per cent
• £3bn to be spent this year on more buses and cheaper rail fares
• Air Passenger Duty raised to £100 – cuts total emissions by 1 per cent
• Climate Change Levy paid by businesses to double – saving 2 per cent of carbon emissions
• £500 million boost for renewable energy grants – saving 1 per cent of emissions with cleaner electricity
• Standard rate of VAT cut from 17.5 per cent to 15 per cent
• Money raised from new 60 per cent income tax for income over £100,000 to be spent on children, pensioners and affordable housing
• Cheaper meals out, hotels and entertainments – VAT reduced to 5 per cent to boost tourism within the UK
• £12bn to be raised by taxing incomes above £100,000 at 60 per cent
• Old age pension to rise 19 per cent to £100 per week
• Child Benefit increased by £5 per week for each child
• £1.5bn more to be spent on more social housing
• Means testing for personal care for the elderly to end
• 60 per cent more to be spent on recycling
• Council Tax rises curbed: Government grants to local authorities to be increased by £2.4bn  

GREEN PARTY BUDGET PROPOSAL

By Green Party Economics Speaker Molly Scott Cato, who is a Senior Lecturer in economics and lives in Stroud.

Limbering Up for a Low-Carbon Future

The Green Party's national response to the budget is released today with the headline 'Counting the Carbon as Well as the Cash'. It presents a costed analysis of the sorts of changes necessary to achieve the carbon reductions that the government promises. Uniquely, it costs the changes in terms of carbon as well as pounds sterling. The overall package of measures will reduce carbon dioxide emissions by an estimated 7.5% in 2007/8.

Our budget represents a whole new way of looking at our economy, and one that would serve the citizens of Gloucestershire well. A green economy will be based on community local production rather than global competition. There will be more time for leisure and our families, with less time spent working and travelling.

To support the small businesses that are the heart of a local economy the Green Party would introduce banded corporation tax, with smaller business paying lower rates than larger businesses. To encourage people to holiday at home rather than flying abroad, the budget includes a VAT cut from 17.5% to just 5% for meals out, hotels and entertainment. This should provide a welcome boost to the Cotswold tourism industry. The Green Party's policy is to abolish VAT, and as a first step the standard rate will be cut from 17.5% to 15%.

While a full range of ecotaxes is planned, the initial stage is to increase the taxes on fuel. The budget includes a proposal to increase the cost of a tax disc for 4x4 vehicles to £1800, raising £8bn. The fuel duty escalator will be reintroduced, increasing the price of petrol to £1.07: this should cut emissions by 3 per cent and raise £3bn. to be spent on more buses and cheaper rail fares. Air Passenger Duty would be increased to £100 and aviation fuel would be taxed like other fuels.

Gloucestershire's most vulnerable citizens would see their incomes considerably increased under a Green government. Council Tax increases would be curbed by increasing the size of grants from central government by £2.4bn. and the old-age pension would rise by 19% to £100 per week, paid for by an increase in the top rate of tax to 60% on incomes over £100,000. There would be increases in social housing and child benefit and an end to means testing for personal care for the elderly. A measure to spend an extra half billion on renewable energy savings grants would generate a carbon reduction of 1%.