Environment boss wants to put carbon tax on driving, heating and holidays

By Daniel Martin
Last updated at 2:15 AM on 09th November 2009

Drivers, households and holidaymakers should be hit with a carbon tax to tackle global warming, the head of the Environment Agency will say today.

Lord Smith, the former culture secretary, wants to see personal carbon allowances for individuals to cut greenhouse gases by penalising people for using too much fuel.

Every time someone used their car, took a flight or turned their central heating on, their personal allowance would go down.

Lord Smith, the former culture secretary, wants to see personal carbon allowances for individuals, to cut greenhouse gases by penalising people for using too much fuel

If it hit zero, they would have to pay to get more carbon credits.

Lord Smith – who as Chris Smith served in Tony Blair’s first cabinet – will call for the measure to be part of an ambitious ‘Green New Deal’ to be introduced within the next 20 years.

Last night a spokesman for the Environment Agency said only those on ‘extravagant’ lifestyles would be hit.

He said: ‘A lot of people who do cycling will get money back. It will probably only be bankers and those on extravagant lifestyles who would lose out.’

But critics said the ‘Orwellian’ plan would be a massive blow to British business by making it harder than competitors to travel round the world.

It could also hit poorer households who exceed their carbon budget and have to pay to buy extra credits. Families who want to take foreign holidays would be particularly affected.

Speaking at the agency’s annual conference, Lord Smith will set out the measures he believes Britain must take to reduce greenhouse gas emissions.

He will argue for increased funding for scientists and engineers to develop the technology for a low carbon economy.

But his call for personal carbon allowances has come under fire.

Economist Ruth Lea, of Arbuthnot Banking Group, said: ‘This is getting beyond a joke.
‘This is all about the control of the individual – and you begin to wonder whether this is what the green agenda has always been about. It’s Orwellian. This will be an enormous tax on business.’

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