BROWN'S BUDGET ANOTHER LOST OPPORTUNITY ON ENVIRONMENT - HUHNE

12.00.00am GMT Wed 21st Mar 2007

Commenting on the environmental announcements in today's Budget, Liberal Democrat Shadow Environment Secretary, Chris Huhne MP said:

"Gordon Brown has introduced more half-hearted half-measures on green taxes. Even since he was spooked by the fuel duty protests in 2000, he has avoided taking radical action.

"The increases in vehicle excise duty are so small that they will encourage just a third of people to switch to environmentally friendly models. However, they will hit many people who already have cars and cannot easily change.

"The evidence shows that VED steps at the level proposed by the Chancellor will persuade barely more than 33 per cent of car purchasers to shift to more environmentally friendly models, whereas the Liberal Democrat plan for a £2,000 duty on new purchases of gas-guzzlers would cause 72 per cent to choose a different vehicle. Moreover, the Liberal Democrat plan would hit only new car purchases, and not penalise people for old decisions.

"Overall, green taxes have been falling steadily as a percentage of our national income. The Government has completely failed to use this key lever to tackle climate change. No other developed country has succeeded in tackling emissions without using green taxes more aggressively.

"When the Chancellor has modestly raised green taxes, as he did again today, he gives them a bad name by failing to hand back the revenue in tax cuts elsewhere.

"The Chancellor has shown that he is always going to be brown not green."