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Miliband 'draws up green taxes' | Miliband 'draws up green taxes' |
(about 4 hours later) | |
The environment secretary is proposing green taxes designed to change people's behaviour to offset global warming, according to a Sunday newspaper. | The environment secretary is proposing green taxes designed to change people's behaviour to offset global warming, according to a Sunday newspaper. |
The Mail on Sunday quotes a leaked letter from David Miliband to Chancellor Gordon Brown. | The Mail on Sunday quotes a leaked letter from David Miliband to Chancellor Gordon Brown. |
Proposals include "pay as you drive" and cheap flight taxes and levies on energy-wasting appliances, it says. | Proposals include "pay as you drive" and cheap flight taxes and levies on energy-wasting appliances, it says. |
Meanwhile Conservative leader David Cameron has told the BBC he would be prepared to tax air travel. | Meanwhile Conservative leader David Cameron has told the BBC he would be prepared to tax air travel. |
This comes ahead of a report expected to warn climate change may cut global annual economic output by up to 20%. | This comes ahead of a report expected to warn climate change may cut global annual economic output by up to 20%. |
The influential report by economist Nicholas Stern is due to be published on Monday. | The influential report by economist Nicholas Stern is due to be published on Monday. |
Ahead of this, the Mail on Sunday says the leaked letter from 18 October calls for urgent action in next month's public spending review and next year's Budget. | Ahead of this, the Mail on Sunday says the leaked letter from 18 October calls for urgent action in next month's public spending review and next year's Budget. |
In the letter to Mr Brown, Mr Miliband calls for measures to combat "car use and ownership", and a "substantial increase" in road tax, the paper claims. He also calls for a new pay-per-mile pollution tax. | In the letter to Mr Brown, Mr Miliband calls for measures to combat "car use and ownership", and a "substantial increase" in road tax, the paper claims. He also calls for a new pay-per-mile pollution tax. |
The paper said leaked proposals suggest families with big cars could end up paying more than £1,000 a year in additional tax. | The paper said leaked proposals suggest families with big cars could end up paying more than £1,000 a year in additional tax. |
'Tax flights' | 'Tax flights' |
Changing people's behaviour is only achieved by "market forces and price signals," Mr Miliband wrote. | Changing people's behaviour is only achieved by "market forces and price signals," Mr Miliband wrote. |
He added: "As our understandings of climate change increases, it is clear more needs to be done." | He added: "As our understandings of climate change increases, it is clear more needs to be done." |
The minister also suggests making flights subject to VAT, for either domestic flights or "better still all EU flights," the Mail says. | The minister also suggests making flights subject to VAT, for either domestic flights or "better still all EU flights," the Mail says. |
Higher emission vehicles could face higher road tax | Higher emission vehicles could face higher road tax |
Meanwhile Mr Cameron spoke about green levies in a pre-recorded interview for the BBC One's The Politics Show. | Meanwhile Mr Cameron spoke about green levies in a pre-recorded interview for the BBC One's The Politics Show. |
He told the programme: "Some green taxes do hit the poorest in our society, so we have to think about that very carefully before we make taxation decisions. | He told the programme: "Some green taxes do hit the poorest in our society, so we have to think about that very carefully before we make taxation decisions. |
"If it means putting a tax on air travel, then yes, that's something we'd be prepared to do." | "If it means putting a tax on air travel, then yes, that's something we'd be prepared to do." |
But he said budgetary decisions should be made closer to budgetary times. | But he said budgetary decisions should be made closer to budgetary times. |
Mr Cameron also gave his backing to Liberal Democrat-controlled Richmond council's plans to charge the drivers of the most polluting vehicles higher parking fees. | Mr Cameron also gave his backing to Liberal Democrat-controlled Richmond council's plans to charge the drivers of the most polluting vehicles higher parking fees. |
Economic impact | Economic impact |
Elsewhere, ex-cabinet minister Stephen Byers has said there may be need to introduce green taxes, according to the Observer newspaper. | Elsewhere, ex-cabinet minister Stephen Byers has said there may be need to introduce green taxes, according to the Observer newspaper. |
The paper said he told an audience of businessmen in China this weekend that: "For the Labour party there must be no no-go areas for policy debate. | |
"We should consider how we can change the structure of our tax system in a way which benefits the lowest-paid and penalises environmentally damaging activity," it quotes him as saying." | |
The Stern Review, due out on Monday, will examine economic, not environmental, arguments of global warming. | The Stern Review, due out on Monday, will examine economic, not environmental, arguments of global warming. |
Sir Nicholas's report is expected to claim that at the very best the cost of tackling global warming would be 1% of annual economic output. | Sir Nicholas's report is expected to claim that at the very best the cost of tackling global warming would be 1% of annual economic output. |
The report looked at the impact of global warming on economic output, or gross domestic product (GDP), until 2100. | The report looked at the impact of global warming on economic output, or gross domestic product (GDP), until 2100. |