Windfall tax and insulation: how green is the 'growth'?

Jeremy Hunt’s autumn statement will not mirror the wishlist of policies advocated by environmentalists and climate campaigners in the UK and abroad.

- SAPHORA SMITH

But there are some bright spots that many will find reassuring after months of concern about the growing influence of the net-zero sceptical wing of the Conservative Party.

“With the existential vulnerability we face, now would be the wrong time to step back from our international climate responsibilities,” Mr Hunt told parliament during his first autumn statement as chancellor yesterday.

The UK remains fully committed” to the Glasgow Climate Pact agreed at Cop26 last year, including meeting a 68 per cent reduction in greenhouse gas emissions by 2030, he added. Those words were welcomed by environmentalists, who are anxiously awaiting the final outcome of the Cop27 summit in Egypt that is due to draw to a close on Friday.

But, as ever, the devil is in the detail. Here, The Independent looks at what yesterday’s autumn statement means for UK efforts to tackle the climate crisis.

Windfall taxes

One headline announcement during the autumn statement was that the government will raise the windfall tax on oil and gas giants from 25 per cent to 35 per cent. Climate campaigners have welcomed the hike in tax burning fossil fuels is the biggest driver of greenhouse gas emissions that is causing our planet to heat up.

However, there remains criticism that the Energy Profits Levy as the tax is called still includes tax relief on investment in oil and gas extraction fuelling global heating. Caroline Lucas, the Green MP for Brighton Pavilion, described it as scandalous” that the government was keeping the investment allowance, adding that fossil fuels must stay in the ground.