Treasury 'pockets extra £10bn' from green taxes

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Each British family is paying £400 more in green taxes than it would cost to cover its carbon footprint, according to the TaxPayers' Alliance.

It says green taxes raised £21.9billion in 2005 - £10billion more than the social cost of that year's carbon emissions of £11.7billion.

"We need more honesty about the costs of extra green taxes when British taxpayers already pay some of the highest pollution charges in the world," said Matthew Elliott of the TaxPayers' Alliance.

And a poll by YouGov for the group showed that nearly two-thirds of people think politicians are using the green issue as an excuse to pull in more cash.

A separate study revealed that the Government gives back in tax breaks just two per cent of the money it collects through environmental taxes.

The Treasury receives around £29.3billion each year in green taxes such as air passenger duty, accountants UHY Hacker Young said.

The Government raises £25.1billion in fuel duties and takes in £2.1billion in air passenger duty each year.

But it gives just £254million back in lower vehicle excise duty for people who drive environmentally-friendly cars.

And the total it hands back each year to environmentally-friendly taxpayers is £549million.

UHY Hacker Young tax partner Roy Maugham said: "It's surprising just how lopsided the Government's approach to green taxes has been over the last ten years.

"At the moment it's all stick and very little carrot."

Dave Timms, from Friends Of The Earth, said: "The greater tax breaks are still being offered to those involved in polluting activities such as the air industry and road construction."

A Treasury spokeswoman disputed the studies. She said: "The Government's definition of environmental taxes includes those taxes that are designed to primarily have an environmental impact - the climate change levy, aggregates levy and landfill tax.

"We make clear, for example, when setting fuel duty rates that the Government takes into account a range of factors, including costs of motoring such as congestion, and the need to maintain sound public finances."