Tax increases in the UK and large investments: implementing the climate strategy
In 2019, the United Kingdom became the first country with a strong economy to decide to achieve carbon neutrality by 2050. During this period, the Kingdom demonstrated progress. However, experts believe that even at this rate, it is unrealistic to achieve all points of the climate strategy without drastic steps. They believe that increasing taxes in the UK can be a tool for the transition to environmentally friendly raw materials. In addition, reducing the use of carbon-based raw materials will require significant investment in alternative sectors, both from the private sector and the government.
One way to increase the effectiveness of these measures is to develop a program to stimulate the market for green technologies. The US government is already doing this, with good results. However, the UK authorities are not yet ready to take drastic steps such as raising taxes. Parliament notes that the country is already a leader in reducing emissions and does not need additional incentives at this time.
Advocates of accelerating the implementation of the Climate Change Strategy insist that innovative solutions must be introduced. Otherwise, they say, the UK could be stuck at its current level of progress. And the promotion of renewable energy should not come at the expense of other sectors of the economy. In this case, it is important that investment in the health and education systems, as well as in green technology, is properly allocated. With a prudent approach, a small tax increase will not be painful for society. The main thing is to communicate the goals of such changes.
It should be noted that in November 2022, the authorities announced a tax increase as a measure to combat a budget deficit of 50 billion pounds. Interestingly, the increase in tax rates applied to the entire population of the country, but the rates for high-income Britons are higher than for poorer citizens.
When it comes to climate change, the United Kingdom is paying particular attention to air travel. Environmentalists say it is one of the fastest-growing sectors in terms of harmful emissions. To improve the situation, a new target has been set: to achieve carbon neutrality for domestic air travel and airports by 2040. In addition, by 2030, the sector must add at least 10% per liter of green SAF fuel to traditional aircraft fuels. The aviation emissions reduction plan will be reviewed every 5 years.
However, not all environmentalists and activists agree with the authorities’ decision. The main reason for criticism is the use of environmentally friendly fuel. In fact, some of them are even more harmful to the environment than their traditional counterparts.