The 2008 Budget – an environmental assessment

The daily news tells us that climate change will be the principal source of many of the world’s problems in the future. It will be the cause of future international conflicts because of competition over energy sources and natural resources. It will lead to mass migration movements resulting in ‘millions of environmental migrants’. It will also contribute to growing tension between North and South over the issue of environmental responsibility.

Bearing these issues in mind and the increasing pressure for the UK to catch up with the rest of Europe in terms of reaching environmental targets, I hoped that the 2008 Budget would be the ‘greenest’ ever. Even though Mr. Darling did mention the environment and climate change 15 times in his speech, I share the disappointment of many environmentalists and believe that the green levies and taxes that were included in this year’s budget, though steps in the right direction, will only bring about small changes.

And even though there were some significant green tax rises in this year’s budget, there were also a few contradictions. For instance, while government put forward a new vehicle excise duty that will raise £735 m in 2010, according to the Institute for Fiscal Studies, the government also delayed a 2p increase in fuel duty. And while the Chancellor also pledged to raise green airline taxes, the government continues to back the expansion of Heathrow. So is the government sending out mixed messages?

To be fair, Mr. Darling did had little room to manoeuvre, as this was one of the most difficult budgets to deliver because of the economic slowdown and the grim prospect for economic growth facing the UK. However, others are not as forgiving. Phil Thornhill, national co-ordinator for the Campaign Against Climate Change, said the Chancellor had failed to "bite the bullet". So if climate change is indeed leading to the consequences I mentioned earlier, it would seem to me that there isn’t much room for compromise.