The UK’s green tax burden is set to increase by 40 per cent throughout the course of Boris Johnson’s premiership, according to new research from a think tank.
The TaxPayers’ Alliance calculates that tax revenues from green taxes will rise to £16.7bn by 2023-24, when the next election is due, after they were £11.7bn in 2019.
Green taxes currently in place in the UK include the climate change levy, carbon price floor, renewables obligation, carbon reduction commitment and emissions trading scheme.
There have been calls from some Tory MPs to cut these taxes to help reduce household energy bills as they are set to rise by an average of £700 in April when the energy price cap increases.
Speaking to the Telegraph, chief executive of the TaxPayers’ Alliance John O’Connell said: “Green taxes already place an extraordinary burden on household bills and businesses.
“Not only are green levies contributing to the 70-year high tax burden, they’re hammering households by artificially inflating prices.
“Ministers must get to grips with these green levies before committing the taxpayer to paying for more energy bailouts.”
It comes as Labour today released a new energy policy that would save the poorest households £600-a-year on their energy bills that would be paid for through a windfall tax on North Sea oil and gas producers.
Shadow chancellor Rachel Reeves said a Labour government would save consumers an average of £100 a year by slashing VAT on energy bills and £94 by removing the cost of supplier failure and spreading it over five years.
The 9m Brits least able to afford their energy bills will also get a further £400 through an extension of the Warm Homes Discount.