Higher tax on household gas to reach net zero

The Climate Change Committee (CCC) has called on the government to place a tax on household gas to help the UK meet its net zero targets

The government’s climate change advisers have said that the government must ‘walk the talk’ and introduce policies to meet its targets for cutting emissions, one suggestion from the group is to increase the tax on gas used for home heating and cooking.

In a report on the outcome of the COP26 conference held in Glasgow last month, the committee called on the Treasury to review the ‘the role of tax in achieving a higher and more consistent carbon price across the economy’ to help reach the UK's goal of reaching net zero by 2050.

A key clause in the Glasgow Pact, signed last month, requires countries to phase out ‘inefficient fossil fuel subsidies’.

The Committee highlighted that currently, electricity is artificially expensive, with almost a fifth of the domestic cost made up of levies funding decarbonisation projects, as well as subsidising energy for poorer households, while just 2% of the price of gas comes from these costs. On average, households currently spend £159 on green levies.

Your free features:

  • Breaking news and expert analysis
  • Customisable daily newsletters
  • Six free CPD learning modules each year
  • Personalised CPD tracker
  • Top 75 Firms league tables
  • Regulatory changes
  • Hardman’s Tax Data

Sign up to Business & Accountancy Daily

Related Articles
Subscribe