The cost of all this climate folly is likely to be a major under-estimate anyway. Hammering the economy for no good reason, and hitting people’s incomes with carbon taxes and other so-called climate regulations, won’t sell well at election time either. Obsessing about the weather has gone way too far.
– – –
Proposals to reduce emissions to ‘net zero’ as part of Boris Johnson’s plan to make the UK a ‘world leader’ in green policies have been thrown into disarray after Rishi Sunak raised objections to the eye-watering cost to the Treasury, says the Mail on Sunday (via The GWPF).
As part of the net zero plan –which would decarbonise the economy by 2050 – No 10 had been expected to publish in the spring details of the strategy for moving away from gas boilers ahead of Glasgow’s COP26 climate change conference in November.
But this has been delayed until the autumn amid mounting alarm about the bill.
The Chancellor – who is already looking for ways to pay back the £400 billion cost of the Covid crisis and the £10 billion a year required to reform long-term care for the elderly – is understood to have baulked at estimates of hitting net zero at more than £1.4 trillion.
The independent Office For Budget Responsibility (OBR) calculated the cost of making buildings net zero at £400 billion, while the bill for vehicles would be £330 billion, plus £500 billion to clean up power generation and a further £46 billion for industry.
After energy savings across the economy, this would leave a £400 billion bill for the Treasury.
The OBR also warned that the Government would need to impose carbon taxes to make up for the loss of fuel duty and other taxes.
The Prime Minister is considering issuing millions of households with ‘green cheques’ worth hundreds of pounds to compensate them for the cost of becoming more energy efficient.
It is the latest claim of tensions between No 10 and No 11 over the strains on the public purse.
Full article here.
via Tallbloke’s Talkshop
July 26, 2021