Table 6.1: The Government's Budget measures and policy objectives
|Policy objective||Corresponding Budget measure||Other relevant policy initiatives affected||Sustainability development indicator1|
|Tackling climate change and improving air quality||
Climate change levy and related measures
Reforms to company car tax
Green travel plans
Authorised mileage rates
Reduced rate of VAT on the installation of energy saving materials
Fuel duty differentials
Draft climate change programme2
Emissions Trading Consultation Document3
Ten Year Plan for transport4
Air Quality Strategy5
Days of air pollution
Electricity from renewable sources
Energy efficiency of vehicles
|Regenerating Britain's cities
Capital allowances for flats over shops
Tax relief for cleaning up contaminated land
Stamp duty exemption for disadvantaged communities
Reforms to the VAT treatment of conversion activity
Urban White Paper6
New homes built on previously developed land
Homes judged unfit to live in
|Protecting Britain's countryside||
Aggregates Sustainability Fund
Landfill tax increases
Reforms to landfill tax credit scheme
Possible pesticides voluntary package/tax
A Better Quality of Life8
Rural White Paper9
Household waste and recycling
Construction and demolition waste going to landfill
Waste arisings and management
1The full set of indicators is published in Quality of Life Counts, DETR 1999.
2Draft Climate Change Programme, DETR March 2000. The Final programme will be published shortly.
3Emissions Trading Consultation Document, DETR, October 2000.
4Ten Year Plan for transport, DETR July 2000.
5Consultation document Report on the Air Quality Strategy, DETR, October 2000.
6Urban White Paper, DETR to be published shortly.
7Waste Strategy, DETR May 2000.
8A Better Quality of Life, DETR May 2000.
9Rural White Paper, DETR (to be published shortly).
Table 6.2: The environmental impact of the Government's Budget measures
|Climate change levy package2||Levy and exemptions3||Savings of at least 2.0 MtC|
|Negotiated agreements4||Savings of at least 2.5 MtC|
|Energy efficiency measures||Savings of at least 0.5 MtC|
|Emissions Trading Scheme||A successful scheme is estimated to deliver emission savings of at least 2MtC by 20105|
|Company car tax reform6||Estimated to produce savings of around 0.5 to 1 MtC in the medium to long run|
|Green travel plans|
Authorised mileage allowances
|Reductions in CO2 and air particulates|
|Reform to car and lorry VED||Reduction in emissions of CO2, NOX and particulates|
|Road fuel duty differentials7||The ULSP differential is estimated to reduce NOX by 1 per cent, reduce CO by 4 per centy and reduce VOCs by 1 per cent in 2004. The ULSD differential is estimated to result in a reduction of 8 per cent of particulates and up to 1 per cent|
The road fuel gas differential will result in a reduction in emissions of particulates
|Road fuel duty escalator||The road fuel duty escalator over the period 1996 to 1999 is estimated to produce carbon savings of 1 to 2.5 MtC by 2010 and small reductions in emissions of local air pollutants|
|Reduced rate of VAT on the installation of energy saving materials||Reduction in 0.1 MtC|
|Reduced rate of VAT on domestic fuel and power||Estimated to increase carbon emissions by 0.2 million tonnes by 2010.|
|Capital allowances for flats over shops|
Tax relief for cleaning contaminated land
Stamp duty relief for disadvantaged areas
Reforms to the VAT treatment on conversion activity
|Reduce pressure on the countryside due to increase in the number of empty and derelict properties|
Increases in clean up of contaminated land
Regeneration and improved functioning of property markets in Britain's most disadvantaged communities
|Aggregates levy and Sustainability Fund||Reductions in noise, dust, visual intrusion, damage to wildlife habitats and other environmental impacts|
|Landfill tax and LTCS||Encourages waste producers and the waste management industry to switch away from landfill towards waste minimisation, re-use and recycling|
1 These estimates are subject to a wide margin of error.
2 There are a number of difficulties involved in estimating the emission savings from the individual components of the climate change levy, including the need to avoid double counting. The figures are calculated using cautious assumptions and are shown for illustrative purposes only.
3 Based on the DTI energy model.
4 Estimates still to be finalised.
5 Based on independent modelling commissioned by DETR.
6 This measure is part of a package of measures, including the changes to VED and the ACEA voluntary agreements.
7 Using the NETCEN emissions model further detail on the methodology used in the model is provided in NETCEN's January 2000 report UK Road Transport Emissions Projections.