Press release

Embargo: 00.01 Monday 8 February 2010, 00.01

£12 billion could be slashed from national debt by going low carbon

The government could slash £12 billion off the national debt through a package of public spending cuts and the abolition of tax allowances that promote growth in carbon emissions, according to a new report published today by the think tank Green Alliance . 

 Cutting back on carbon spending   was commissioned by Greenpeace, the RSPB and WWF-UK and reviews the options for reducing spending and tax anomalies to accelerate the transition to a low carbon economy.

Stephen Hale, director of Green Alliance, said:

“This report is essential reading for all those who hope to be in power after the next election. It outlines how we can save £12 billion over four years, by eliminating damaging government spending on road expansion, tax breaks for high carbon industries and other spending that increases carbon emissions. It’s an important ingredient of the transition we urgently need to a low carbon recovery.”

The report highlights that:

· reducing public sector energy and fuel consumption might save £1.5bn over four years, especially if the Ministry of Defence can also cut some of the costs of the logistics of transporting and protecting its fuel supplies;
· a two year moratorium on road expansion would save £2.4bn over two years; 
· the roads budget could be cut by a further £2.8bn once the appraisal methodology was reformed;
· abolishing allowances against Petroleum Revenue Tax and the Climate Change Levy could save £2.9bn;
· abolishing zero-rating of VAT for aircraft and ships could save £2.2bn.

Dr Doug Parr, Greenpeace Chief Scientists, added:

“If the major parties are serious about cutting both the deficit and our carbon emissions then they would be reckless to ignore this new report. We’ve got to stop handing out millions in tax breaks to the airline industry and approving roads instead of cleaner alternatives. Britain can be a world leader in renewable technologies and low carbon transport, but only if we stop bailing out the dirty industries of the 20th century.”

Martin Harper, Head of Sustainable Development at the RSPB, said:

"Whoever forms the next Government must tackle not just the financial crisis, but also the crises facing our wildlife and our climate. As this report shows, the solutions are linked. Our leaders must cut wasteful expenditure that pollutes or destroys the environment and invest in protecting nature and the services it provides. Action today should mean the children of the future inherit a world full of natural beauty, where the engines of life – the air, seas, rivers and forests – remain vital and healthy."

David Norman; Head of Campaigns WWF-UK, commented,

"The hole in the country's finances means, inevitably, that measures to support the environment and tackle climate change will come under pressure. This report is a grown-up response to this dilemma, and demonstrates that with a clear vision and sense of purpose the UK can move toward a low-carbon economy without profligate spending. Not to do so would cost us too much in the long run."


ends


For more information contact:

Chris Hewett, Green Alliance associate, chewett@green-alliance.org.uk 020 7630 4526 / 07810 833 732
Matthew Davis, media adviser, matthew@3-c.uk.net/07758 300 007 

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