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Supermarkets, airlines, carmakers and property developers fear that they will bear the brunt of a series of green measures to be announced in Alistair Darling’s first Budget next week.
The Chancellor is believed to be drawing up a range of proposals to make good his commitment to tackle climate change.
In addition to tax incentives to encourage the use of low-emission vehicles, industry is also anticipating new aviation taxes and green rules covering the sale of commercial property.
As retailers prepared for the Budget to feature a warning about the proliferation of free plastic bags, Asda became the first of the leading supermarkets to announce action yesterday to reduce the number given away in its stores. Asda said last night that it would be introducing a “bag on request” initiative across Britain from June 1. Trials showed that stores cut the number of plastic bags handed out by 20 per cent if shoppers were forced to ask for one.
Andy Clarke, retail director, said: “We believe this is the best way to encourage shoppers to change the habit of a lifetime and start reusing their bags instead.”
Ministers warned retail chiefs last week that a new plastic bag tax would be imposed unless the shops took radical action.
High street chains had agreed to slash the use of plastic bags by 25 per cent by the end of 2008, but the number has only fallen by 14 per cent to 12.4 billion.
In the past week alone Marks & Spencer has announced a 5p plastic bag charge in its food halls and B&Q said yesterday that it would be charging for single-use carrier bags in its 320 stores.
Tesco, Britain’s biggest retailer, has remained defiant and insisted that it has no plans to charge for bags despite intense pressure for it to lead by example.
Mr Darling, who used early speeches to describe climate change as the greatest threat to the planet, is also tipped widely to confirm that he will change aviation taxes to encourage more environmentally friendly flying. The commercial property industry is also likely to be hit with regulations that will force owners to provide energy performance certificates (EPCs) when they try to sell or let a building.
The Government has insisted that the cost of the certificates, which monitor the energy efficiency of buildings, will cost from a few hundred pounds for a small building to about £12,000 for a large shopping centre. Property agents believe the cost could be up to five times greater.
The Chancellor said last year that he was considering scrapping air passenger duty (APD), which is levied on anyone who takes a flight in Britain, in favour of a single tax per flight. Airlines would be taxed a fixed amount no matter how many passengers they carried, which would encourage them to operate fuller flights. The move would also close a loophole that allows cargo flights and private jets to avoid paying taxes.
Aviation sources said that Mr Darling may go even farther and announce his intention to calculate the tax per flight, based on emissions created by each aircraft. This would provide airlines with a financial incentive to retire dirty, old aircraft in favour of new ones, which are usually between 15 and 25 per cent more fuel efficient.
The Government hopes that by changing the taxes on flying its revenue from aviation will increase by 25 per cent to £2.5 billion and at the same time reduce carbon dioxide emissions.
Goldman Sachs said yesterday that the move to replace APD with an emissions tax would benefit airlines such as easyJet, which tend to operate fuller flights and are buying latest-generation aircraft. The bank said: “This seems a fairer system and it discourages empty flights and also aligns taxes and emissions much more precisely.”
A plastic bag tax has been in force in the Irish Republic for the past six years. Plastic bag use has fallen by 90 per cent and there is less bag litter. Almost £60 million has been raised since the levy was introduced.
Campaigners said the scheme was a “win-win situation” because revenue raised from the “plas tax” is used for environmental projects and clean-ups.
China plans to stop shops from offering free plastic bags from June 1 and Bangladesh has already banned polythene bags.
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