Asked by: Geraint Davies (Independent - Swansea West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has had recent discussions with Ministerial colleagues on incentivising (a) an improvement in the performance of incineration through taxation and (b) the improvement of waste management generally.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
In the Resources and Waste Strategy 2018, the government set out that incineration currently plays a significant role in waste management in the UK, and that the government expects this to continue. However, in the long term the government wants to maximise the amount of waste sent to recycling instead of incineration and landfill. As set out at Budget 2018, should wider policies not deliver the government’s waste ambitions in the future, it will consider the introduction of a tax on the incineration of waste, operating in conjunction with landfill tax, taking account of the possible impacts on local authorities. All tax policy is kept under review. The government also maintains and develops tax policies to support effective waste management, including the existing Landfill Tax and the world leading Plastic Packaging Tax which will be introduced from April 2022.
The government is committed to the improving of waste management and set out the Waste Management Plan for England 2021 earlier this year. Further detail available at: https://www.gov.uk/government/publications/waste-management-plan-for-england-2021
Asked by: Geraint Davies (Independent - Swansea West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to introduce taxes on air pollutants produced by industry.
Answered by Helen Whately - Minister of State (Department of Health and Social Care)
The UK has been at the forefront of reducing industrial pollution. In January 2021, the UK launched its own Emissions Trading Scheme (ETS) to replace membership of the EU ETS. The UK ETS already puts a price on carbon emissions from energy intensive industries, as well as from power generation and some aviation, including domestic, UK-EEA, and UK-Gibraltar flights.
The UK also has a strong and proportionate regulatory framework in place to require industry to reduce emissions and industry has responded with investment and innovation to meet these standards. Regulations such as the Environmental Permitting (England and Wales) Regulations 2016 play an important role in ensuring regulators and industry work together effectively to reduce pollution through a robust licensing and permitting regime. The Government recently consulted on creating a best available techniques process for the UK in which industry and regulators will reduce emissions by setting new standards for complex industrial processes.
Asked by: Geraint Davies (Independent - Swansea West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 15 July 2021 to Question 902805 on carbon tax in the transition to net zero, what other potential measures the Government is assessing to mitigate the risk of carbon leakage.
Answered by Kemi Badenoch - President of the Board of Trade
As discussed in the Net Zero Review Interim Report and the Industrial Decarbonisation Strategy, a range of approaches could be used to help address the risk of carbon leakage.
Currently, the UK addresses carbon leakage risk primarily through the provision of free UK Emissions Trading Scheme (UK ETS) allowances. Our approach to the provision of free allowances is being reviewed and we aim to consult later this year to ensure the system continues to be fair, equitable and to incentivise decarbonisation. In addition, there are further relief schemes to reduce the cumulative impact of some energy and climate change policies on industrial electricity prices for eligible energy intensive industries (EIIs), on which a separate consultation is currently open.
Asked by: Geraint Davies (Independent - Swansea West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with Cabinet colleagues on the introduction of a carbon tax for imported goods.
Answered by Kemi Badenoch - President of the Board of Trade
As we transition to net zero, the UK recognises the carbon leakage risk. A range of approaches could potentially help to address this risk, of which carbon border adjustments are one. Treasury ministers and officials are in regular contact with colleagues across the government on all matters related to the Net Zero transition.
Asked by: Geraint Davies (Independent - Swansea West)
Question to the HM Treasury:
To ask the right hon. Member for East Hampshire, representing the Parliamentary Works Sponsor Body, what assessment of air quality has been made as part of the plans for refurbishing the Palace of Westminster.
Answered by Damian Hinds - Minister of State (Education)
An initial desk-based assessment of existing data regarding air quality in the vicinity of the Palace of Westminster has been conducted as part of the Restoration and Renewal Programme, and a further assessment will be conducted to provide more accurate and up to date data. These assessments will inform the development of the designs and business case for the restoration works.
The Sponsor Body has agreed a strategic objective to mitigate the environmental impact of the Programme during the construction phase and to minimise the impact in relation to the Palace's future operation, in line with its statutory obligations. This objective has been endorsed by the Commissions of both Houses and will be kept under review as the Programme progresses.
Asked by: Geraint Davies (Independent - Swansea West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with the Secretary of State for Business, Energy and Industrial Strategy on the effect on the zero-emission technology industry of the red diesel taxation reform Budget announcement made in March 2020.
Answered by Kemi Badenoch - President of the Board of Trade
The Chancellor announced at Budget 2020 that the Government will remove the entitlement to use red diesel from April 2022, except in agriculture, fish farming, rail and for non-commercial heating (including domestic heating). This change will ensure that most businesses using diesel in the UK pay the standard fuel duty rate on diesel, which more fairly reflects the harmful impact of the emissions they produce.
These reforms are also designed to ensure that the tax system incentivises users of diesel to improve the energy efficiency of their vehicles and machinery, invest in cleaner alternatives or use less fuel. The Government has previously received feedback from developers of alternative fuels and technologies that they view the low cost of running a diesel engine with red diesel as a barrier to entry for greener alternatives.
To support the development of alternative energy sources that businesses can switch to, the Chancellor committed at Budget 2020 to at least doubling the size of the Department for Business, Energy and Industrial Strategy’s £500 million Energy Innovation Programme.
Recognising that this will be a significant change for some businesses, the Chancellor set out at Budget that businesses will have until April 2022 to prepare before any changes take effect. The Government launched a consultation in July on these tax changes and this has now closed. The Government will announce next steps in due course.
Asked by: Geraint Davies (Independent - Swansea West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if the Government will make an assessment of the potential merits of bringing forward the planned reforms to red diesel taxation in the event that data shows that those reforms will accelerate the development of clean technology to tackle air pollution.
Answered by Kemi Badenoch - President of the Board of Trade
The Chancellor announced at Budget 2020 that the Government will remove the entitlement to use red diesel from April 2022, except in agriculture, fish farming, rail and for non-commercial heating (including domestic heating). This change will ensure that most businesses using diesel in the UK pay the standard fuel duty rate on diesel, which more fairly reflects the harmful impact of the emissions they produce.
These reforms are also designed to ensure that the tax system incentivises users of diesel to improve the energy efficiency of their vehicles and machinery, invest in cleaner alternatives or use less fuel. The Government has previously received feedback from developers of alternative fuels and technologies that they view the low cost of running a diesel engine with red diesel as a barrier to entry for greener alternatives.
To support the development of alternative energy sources that businesses can switch to, the Chancellor committed at Budget 2020 to at least doubling the size of the Department for Business, Energy and Industrial Strategy’s £500 million Energy Innovation Programme.
Recognising that this will be a significant change for some businesses, the Chancellor set out at Budget that businesses will have until April 2022 to prepare before any changes take effect. The Government launched a consultation in July on these tax changes and this has now closed. The Government will announce next steps in due course.
Asked by: Geraint Davies (Independent - Swansea West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to page 19 of the Reforms to the tax treatment of red diesel and other rebated fuels: consultation, what steps his Department plans to take to assess the effect of those reforms on the prices of goods and services that households and voluntary organisations use.
Answered by Kemi Badenoch - President of the Board of Trade
The Chancellor announced at Budget 2020 that the Government will remove the entitlement to use red diesel from April 2022, except in agriculture, fish farming, rail and for non-commercial heating (including domestic heating). The Government recognises that this will be a significant change for some businesses and launched a consultation in July to make sure it has not overlooked any exceptional reasons why other sectors should be allowed to continue to use red diesel beyond April 2022.
To assess the effect of these reforms on the prices of goods and services that households and voluntary organisations use or pay for over the long-term, the Government will draw on a range of relevant evidence. This includes information received from stakeholders as part of the consultation on sectors and organisations' current red diesel consumption and costs, their capacity to shift to alternatives to red diesel, and their capacity to pass through costs down the supply chain or absorb these extra costs.
Asked by: Geraint Davies (Independent - Swansea West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with the Secretary State for Environment. Food and Rural Affairs on the potential merits of carbon border adjustments for supporting the UK's climate commitments.
Answered by Kemi Badenoch - President of the Board of Trade
As a global leader on decarbonisation, the UK recognises the importance of ensuring that policy interventions to cut domestic emissions do not lead to increased emissions elsewhere. A range of approaches could potentially help to address this, of which carbon border adjustments are one, and the Treasury continues to engage on the issue.
Asked by: Geraint Davies (Independent - Swansea West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with the Secretary of State for Housing, Communities and Local Government on the potential for improved walking and cycling infrastructure to increase footfall on local high streets.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
To support our high streets throughout the Covid-19 pandemic, the Government has provided over £10.5 billion from the Small Business Grant Fund. In addition, to make it easier and safer to walk and cycle, the government has announced a £2 billion package, which includes £225 million in emergency funding for local authorities to help them create pop up cycle lanes and re-allocate road space.