Income tax cuts should offset increase in green taxes to £15 per week
GMB London calls on government for 50% hike to £15 per week in green taxes to be offset with equivalent cut in income taxes for all workers except those on high pay.
A moment of truth is approaching - so fairness in taxes and a UK supply chain have to be fundamental in paying for the transition to net zero carbon emissions by 2050 says GMB London.
GMB London, the union for energy workers, commented on a report in the Times last week that the UK Government will include home heating and transport in the scheme to replace the EU Carbon emissions Trading Scheme.
This proposed government carbon reduction scheme would increase the average cost of running a petrol car by more than £100 a year while the average gas bill could rise by as much as £170 - almost a third.
Warren Kenny, GMB London Regional Secretary, said:
“This change would lead to a £5 or 50% addition to the current £10 per week already levied on household energy bills to pay for green energy subsidies being paid for renewable energy sources.
“£15 per week represents a charge of more than 5% of the current level of the national minimum wage per week. As currently levied this is an unfair flat tax charged without any consideration of ability to pay.
“GMB Congress policy is that subsidies to pay for renewable energy sources should be funded from general taxation and that carbon taxes should be offset by equivalent cuts in income taxes for all but the highest paid workers. See notes to editors below for 2017 GMB London press release on motion carried at GMB Congress.
“In addition, GMB policy is that the payment of green subsidies should be linked to using a UK based steel fabrication supply chain for the 8,000 wind turbines required for net zero carbon emissions by 2050. See notes to editors below for recent GMB London press releases on this.
“Any Government plan to increase carbon taxes to £15 per week, by including home heating and transport in the UK replacement for the EU Carbon Emissions Trading Scheme, must be the trigger for equivalent cuts in income taxes to offset all carbon taxes for all but the highest paid workers.
“GMB London call on the Labour Party to support offsetting cuts in income taxes as carbon taxes rise for all but the highest paid workers as part of the progressive taxation agenda. GMB is also directing this call to all political parties in Parliament including the Conservatives, Liberal Democrats, SNP, Plaid Cymru, Green Party, SDLP and DUP.
“A moment of truth is approaching. Fairness in taxes has to be fundamental in paying for the transition to net zero carbon emissions by 2050. Carbon taxes have to be offset by equivalent cuts in income taxes for all but the highest paid workers.”
End
Contact: John Colquhoun, GMB London Region Organiser 079 8075 3114
Notes to editors
1 Link to 2017 GMB London press release on renewable energy subsidies should be paid from general taxation.
2 Link to May 2021 GMB London press release on linking renewable energy subsidies to using UK supply chain
