George Osborne was on Radio 4 this morning making a very clear and intelligent argument in favour of the principle of green taxes.
I think most people these days are a little cynical about green taxes. Isn’t it true, they say, that green taxes are about revenue rather than behaviour? Isn’t it true that outside of London there is no viable alternative to private transport? And isn’t it true that a tax meant to disincentivise a behaviour, in the absence of an alternative, serves only to hurt the lower and middle earners?
Well Osborne’s solution is to create price stability — ensure the effective price of oil maintains a certain level and there will be a realistic chance of people investing in alternatives. Make long-term guarantees about the minimum level of landfill tax and then companies can be sure that it is worth investing in making money out of the situation.
While we would all like to believe that people and companies do the right thing because it’s the right thing, there’s absolutely no harm in allowing companies to profit from environmentally friendly practices. Even though there are arguments about the ‘green-ness’ of the Toyota Prius, no-one can claim it has been bad for the Toyota company.
Our current government announces things at pre-budget report stage and if they’re unpopular, changes its mind on the day of the budget. Osborne and co. have promised that there won’t be a raft of surprise new measures on the day of the budget which will allow companies and early-adopter consumers to know that their purchases and money-making exercises are going to have a sound-business case in five years time.
Like social welfare and the NHS, the Conservatives have taken the lead on another policy area — environmental realism.
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