Green tax burden set to rise by more than 40% compared to Boris Johnson’s post as Prime Minister

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Taxpayers’ Alliance analysis found that the UK’s top ‘green taxes’ cost individuals and businesses £ 11.5 billion in fiscal year 2020-2021 and are expected to reach £ 16. £ 7 billion in 2023-24 and £ 18.8 billion in 2026. -27.

The lobby group said: “This year the green tax burden is expected to be the highest on record. At £ 12.5 billion, there has been an increase of £ 11.6 billion since 2001. Most of that increase – £ 10.3 billion – has occurred since the arrival at power of the conservative party in 2010. »

John O’Connell, Managing Director of the TaxPayers’ Alliance, said: “Green taxes are already placing an extraordinary burden on household and business bills.

“Not only have environmental taxes contributed to the high tax burden for 70 years, but they hit households by artificially inflating prices.

“Ministers need to tackle these green levies before committing the taxpayer to paying more energy bailouts. “

The taxes include the climate change tax, the carbon floor price, the renewable energy obligation, the carbon reduction commitment and the emissions trading system.

Energy giant Centrica said last week that removing environmental and social levies from energy bills and “funding” green “programs through general taxation instead” would lower annual bills. from £ 170 “overnight”.

Many Conservative MPs want ministers to go further and suspend or cancel the levies or completely. However, government sources said that a significant proportion of the costs would simply have to be funded by taxpayer dollars if they were taken from consumers’ bills, as the money is used to execute renewable energy contracts with consumers. companies.

Before entering Downing Street, Mr Johnson spoke out against excessive green taxes, saying in one column: ‘If you’re an incorrigible old Lefty like Jeremy Corbyn, you see the problem of global warming as the perfect excuse for that the government tax, ban, nanny, wag their fingers and generally intimidate anyone involved in any type of economic activity – especially business. “

The tax burden could reach its highest level in 70 years

Previous TaxPayers’ Alliance analysis concluded that the tax burden would peak in 70 years if national insurance contributions were increased to fund social care, raising it to levels not seen since Clement Attlee’s Labor government .

A one percentage point increase in contributions to the NI would mean that government tax levies, as a percentage of gross domestic product (GDP), would rise to 35.4% by fiscal year 2024-25.

By contrast, at the end of Mr. Attlee’s tenure as prime minister in 1951, the tax burden stood at 36.1 percent, the lobby group said, a level that has not been exceeded in the meantime.

A government spokesperson said: “Energy price caps are currently protecting millions of consumers from high gas prices around the world. We will continue to listen to consumers and businesses on how to manage energy costs.

“We recognize that people face cost-of-living pressures, which is why we are taking action worth over £ 4.2bn and supporting vulnerable households through initiatives such as the £ 500million household support fund, the hot house discount, winter fuel payments and cold weather payments.


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