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Miliband draws up green tax plan Miliband draws up green tax plan
(about 12 hours later)
Environment Secretary David Miliband has confirmed the government is holding discussions on tackling climate change using green taxes.Environment Secretary David Miliband has confirmed the government is holding discussions on tackling climate change using green taxes.
He refused to confirm details, shown in a leaked letter, which may include "pay as you drive" tax, cheap-flight tax and levies on energy-wasting appliances.He refused to confirm details, shown in a leaked letter, which may include "pay as you drive" tax, cheap-flight tax and levies on energy-wasting appliances.
He told Sky News that "the longer we wait, the more costly it will be". He said the motive was to "get to grips with this global climate challenge".
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.
Liberal Democrat leader, Sir Menzies Campbell, said "hard choices" had to be made to combat climate change.Liberal Democrat leader, Sir Menzies Campbell, said "hard choices" had to be made to combat climate change.
The comments come ahead of a report expected to warn climate change may cut global annual economic output by up to 20%.The comments come 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.
Have Your Say Another tax from the Labour Government - well there's a surprise. Steve Atty, Cheltenham Send us your comments The Mail on Sunday quotes a leaked letter from Mr Miliband to Chancellor Gordon Brown from 18 October, which it says calls for urgent action in next month's public spending review and next year's Budget. Have Your Say Another tax from the Labour Government - well there's a surprise. Steve Atty, Cheltenham Send us your comments
Mr Miliband told the BBC that it would be "measures, not targets" that would ultimately make the difference in the drive for change.
"And it's measures around which we have to build a national consensus and an international consensus to make this change that is ever more vital, " he said.
The Mail on Sunday quotes a leaked letter from Mr Miliband to Chancellor Gordon Brown from 18 October, which it says calls for urgent action in next month's public spending review and next year's Budget.
In the letter, 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, 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.
Mr Miliband also told Sky News that the UK was responsible for "two per cent of global emissions" and that it was "vital that this is a global response, not just a national response". Mr Miliband also told the BBC that the taxes being considered were not intended as a revenue-raising exercise.
He said: "In the UK I think we should be proud that our country is leading the way in the reduction of the greenhouses gases, the carbon dioxides that are so dangerous. "We are using mechanisms available to government, whether they be regulatory or taxation, to change behaviour," he said. "They're not fundamentally there to raise revenue."
Higher emission vehicles could face higher road taxHigher emission vehicles could face higher road tax
"It's very significant that the economics revealed by Sir Nicholas Stern's report should be that the longer we wait - and certainly the longer we wait beyond the ten to 15 year timeframe that's set by the scientists - the longer we wait, the more costly it will be.
"I think it's good that the Conservatives have come out of the Stone Age, they want to debate these issues.
"I look forward to the next election when all parties are competing to show that they can make a difference on the climate."
Tax hikesTax hikes
Sir Menzies told BBC One's Sunday AM programme: "We have absolutely no option but to deal with the problem of climate change and nothing but hard choices will do it."Sir Menzies told BBC One's Sunday AM programme: "We have absolutely no option but to deal with the problem of climate change and nothing but hard choices will do it."
Meanwhile Mr Cameron spoke about green levies in an interview for the BBC One's The Politics Show.Meanwhile Mr Cameron spoke about green levies in an 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.
"We'll come up with those ideas closer to a general election - but green taxes will go up.""We'll come up with those ideas closer to a general election - but green taxes will go up."
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.
He also said he would put a wind turbine and solar panels on top of Downing Street if he became prime minister.He also said he would put a wind turbine and solar panels on top of Downing Street if he became prime minister.
'Grave threat''Grave threat'
BBC political correspondent Robin Brant said there was general agreement amongst senior politicians that climate change is "really posing a grave threat to the future of the world".BBC political correspondent Robin Brant said there was general agreement amongst senior politicians that climate change is "really posing a grave threat to the future of the world".
He said: "It's David Cameron's the new-look Conservatives who have made this issue the centre very much of their agenda now - somewhat surprising.He said: "It's David Cameron's the new-look Conservatives who have made this issue the centre very much of their agenda now - somewhat surprising.
"It was the Liberal Democrats who were the party who were going on about this for a long, long time before.""It was the Liberal Democrats who were the party who were going on about this for a long, long time before."
And he added that Labour was likely to finalise its green tax plans over the coming weeks and would release further details in next year's budget.And he added that Labour was likely to finalise its green tax plans over the coming weeks and would release further details in next year's budget.
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.
A new report, Up In Smoke 2, based on research from a coalition of UK aid agencies and environmental groups, says climate change is already affecting Africa.A new report, Up In Smoke 2, based on research from a coalition of UK aid agencies and environmental groups, says climate change is already affecting Africa.