Environmental Levies To Cost £57 bn In Next Five Years
By Paul Homewood
Following the Chancellor’s Budget Statement, the Office for Budget Responsibility has published its latest Economic & Fiscal Outlook for the next five years.
The projected cost of Environmental Levies is £57.4bn between 2017/18 and 2021/22:
2.7 Environmental levies | |||||||
|
£ billion | ||||||
|
Outturn | Forecast | |||||
|
2015-16 | 2016-17 | 2017-18 | 2018-19 | 2019-20 | 2020-21 | 2021-22 |
Carbon reduction commitment | 0.7 | 0.6 | 0.6 | 0.5 | 0.5 | 0.0 | 0.0 |
Warm home discount1 | 0.0 | 0.3 | 0.3 | 0.3 | 0.3 | 0.4 | 0.4 |
Feed-in tariffs1 | 0.0 | 1.3 | 1.3 | 1.4 | 1.5 | 1.5 | 1.6 |
Renewables obligation | 3.9 | 4.6 | 5.4 | 6.3 | 6.6 | 6.8 | 7.0 |
Contracts for difference | 0.0 | 0.1 | 0.7 | 1.3 | 1.9 | 2.7 | 3.2 |
Capacity market | 0.0 | 0.0 | 0.2 | 0.7 | 1.0 | 1.3 | 1.4 |
Environmental levies | 4.6 | 6.9 | 8.7 | 10.7 | 11.9 | 12.6 | 13.5 |
Memo: Expenditure on renewable heat incentive (RHI) | 0.4 | 0.6 | 0.7 | 0.9 | 1.0 | 1.1 | 1.2 |
Note: The ‘Environmental levies’ line above is consistent with the ‘Environmental levies’ line in Table 4.6 of the March 2017 Economic and fiscal outlook. | |||||||
1 The ONS have yet to include Warm Home Discount and Feed-in Tariffs in their outturn numbers. If they were included, they would have been £0.3bn and £1.1bn respectively. |
http://budgetresponsibility.org.uk/efo/economic-fiscal-outlook-march-2017/
Although the cost this year is expected to be £1bn less than anticipated last November, because the cost of next winter’s capacity market auction turned out to be less than forecast, the cost increases in future years, so overall there is little change to last year’s Outlook.
By 2021/22, the cost of Environmental Levies will be £13.5bn, about £500 per household.
On top of this is the cost of the RHI, which adds another £4.9bn.
Apart from the carbon reduction commitment, the cost of the levies is loaded onto energy bills.
In addition, Air Passenger Duty and the Climate Change Levy will add £29bn over the next five years:
Taking all of these items together, the overall cost for the next five years amounts to £91.3bn.
Interestingly, the OBR expect revenue from fuel duties to rise from £27.5bn to £30.0bn by 2021/22. This does not say much for electric cars making any inroads.
Comments are closed.
Paul put the “bn” in the title
Ta!!
Yes! I was a bit startled to read that headline also! 😉 Unfortunately, this expenditure is something May and Hammand cannot amend without rolling back the Climate Change Act; this does not look like a priority for May’s Government!
A similar error in the last week’s greenie US press announced that 55% of US electricity was from wind power! Later this was corrected to 5.5% but with less razmataz!
This reads like a diary of mental defectives. Based on a false and fraudulent science, created by fools and paid for by ignorant plebs.
Is there no one left in the country endowed with common sense and intelligence to repeal that pernicious Climate Change Act 2008.
It has to be remembered that £57bn will not have disappeared. $57bn will have been taken from UK citizens and £57bn will have been received by other people. This must be one of the most lucrative criminal enterprises ever carried out in the UK.
“Interestingly, the OBR expect revenue from fuel duties to rise from £27.5bn to £30.0bn by 2021/22. This does not say much for electric cars making any inroads.”
Remember your prediction in “Climate Change Committee Want Road Pricing” October 18, 2013:
https://notalotofpeopleknowthat.wordpress.com/2013/10/18/climate-change-committee-want-road-pricing/
Lo & behold:
http://www.bbc.co.uk/news/business-39224680
They SAY it will go into a road fund – yeah; BS of course.
Meanwhile: No real evidence El Nino coming back:
http://www.tropicaltidbits.com/analysis/ocean/
Austerity creaction in the raw.
Which is worse – the government levies or energy company profiteering?
Energy companies ‘ripping off’ millions, ministers say
http://www.theguardian.com/money/2017/mar/12/millions-overpaying-energy-bills-admits-ministry-big-six
The latter is much worse, because it provides an easy diversion of blame from the former.
Yes best context by putting per household
£57bn = £11bn per year
24mn households so about £500/year/household