Jonathan Leake
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THE Conservatives are proposing to offer tax cuts worth thousands of pounds to householders who make homes more energy efficient.
A policy group set up by David Cameron is recommending rebates in stamp duty, reductions in council tax and cuts in the Vat levied on materials that save energy.
They would help buyers to recover much of the £9,800 stamp duty paid on the average detached house purchase, and let them make savings of hundreds of pounds a year in council tax. The measures will be set out in an 800-page report from the Quality of Life group led by Zac Goldsmith, the millionaire environmentalist, and John Gummer, the former environment secretary.
The proposals, which also cover transport, food, waste and “wellbeing”, are designed to trump Gordon Brown’s attempts to woo the “green” vote. In one of his first policy announcements as prime minister, he proposed five “eco-towns”.
However, some of the group’s proposals are likely to provoke a backlash from rightwingers when they are debated at the Tories’ annual conference in Blackpool in three weeks’ time.
A proposal to restrict airport expansion and impose taxes on flying has already been criticised by John Redwood, who chaired a policy group on competitiveness. A proposal to impose extra tax on gas-guzzling cars is also widely expected.
Other sections of the report call for restrictions on supermarkets and suggest that the high-fat high-sugar foods promoted as cheap by retailers are costing the nation billions of pounds in health costs and reduced productivity.
For some, the most controversial idea may be the proposed abandonment of GDP (gross domestic product) as the main measure of the nation’s success. Goldsmith and Gummer suggest it could be replaced with the so-called Happy Planet Index (HPI), devised by the New Economics Foundation and Friends of the Earth, which tries to include measures of human wellbeing and happiness in measures of national success.
“David Cameron set up this group to be radical in the wake of three serious election defeats by Labour,” said Goldsmith, who plans to stand as Tory candidate for Richmond, southwest London, at the next election. “The world is changing fast and this is the party’s chance to take the lead in adapting to that.”
The report, due to be published on Thursday, says one of its primary aims is to reduce Britain’s energy use. Goldsmith and Gummer focused on buildings because the energy used in providing them with heating, lighting and other services accounts for about half the nation’s carbon emissions.
“We propose a partial rebate of stamp duty if all cost-effective energy efficiency improvements are adopted at the time of sale or shortly after,” says the report. “This should be combined with a zero rate of stamp duty for zero carbon homes. We also favour a discount on council tax payable in respect of all homes which are built to the highest environmental standards.”
A key aim of both authors was to make green measures attractive by offering people incentives to “green” their lives, rather than penalise them for failing to do so.
The report proposes curbing the rise in “electricity-guzzling” home appliances. It recommends power consumption standards for appliances, particularly devices such as plasma televisions and tumble dryers, which use a lot of electricity. Power companies would have to install smart-meters in every home, giving customers more details on electricity use.
It is, however, in the report’s chapter on “wellbeing” that its authors may run up against the limits of the Tory party’s willingness to change.
The chapter was expected to cover issues such as working hours and suggestions for encouraging fathers to spend more time with their children. Insiders say that party chiefs feared such ideas might be too “woolly” and easily lampooned. But the final version will still propose replacing GDP with the HPI as a measure of national progress.
The index is based on three indicators, two of which are objective: life expectancy and the ecological footprint, a measure of people’s impact on the environment. The third is derived from people’s reports of their level of life satisfaction. Studies show such reports correspond well with levels of physical and mental health.
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The debate on going beyond GDP to measure progress, true wealth and wellbeing is very much alive in other countries too and those interested in fuelling the UK debate with ideas from abroad could benefit from meeting the international movers and shakers in Brussels on the 19 and 20th of November. See www.beyond-gdp.eu
Patrick ten Brink, Brussels, Belgium
Very good idea.It will make people to become green conscience and help the global warming which is getting into very dangerous state.
Suraj Sehgal, London, UK
Britain chances to stop this global warming are rather like a small boy trying to raise the sea level by relieving himself into it.
Green taxes are just another con to raise taxation.
If there really is a global warming problem the matter must be adressed by the U.S.A, China and Africa.
But who are we to tell those people how to live.
There again a few years ago it was topical to talk of a new ice age.
Bernard Parke, GUILDFORD,
So if you live in an old property which cannot meet the new "green" housebuilding standards, effectively you will be penalised.
Where did the Conservatives get these clowns from?
Jim Carr, Bospham, UK
Assuming the amount raised in taxation is only 'what is required' then how will the shortfall be funded?
Peter Crombie, Garstang,
Ah, its nice to see that you would think before you post Fred, We actually it's quite clear that you don't. It would obviously be part of this policy to help those not in a position to help themselves as has always been the Tory way.
Andrew, Belfast,
Consumer products such as televisions are designed for an global marketplace. If it is necessary to provide a 'special' to meet UK energy standards it will be very costly and it may not be worthwhile for manufacturers unless a worldwide standard is adopted.
m wood, yeovil, uk
Yes, thats right, just because the rich can afford to save a mere £200/year council tax by adopting green measures - get real!!
The only people who will want to save this money are those who might actually measure the benefit as a percentage of their income. The rich will do as they please - they always do.
These measures are designed to tackly the vast majority of middle incomers who'se consumption is highest as a group.
It's not about income brackets, it's about finally rewarding low carbon choices. If they adopt this they get my vote. Brown's a road block to the low carbon sector - he stalls, vetoes, ruins any chance it gets to grow. The Conservatives are being smart - reward the market and consumer for good behaviour, dont confuse the message with the green stick (stealth tax) approach of Old Fagin Brown nimble fingers.
S. Crawford, Lincoln, UK
I agree with Zac and QoLC, one has to tax "bad" consumer things and give tax breaks and rewards on green living and green consumerism.
Reducing tax on generational wealth creation such as capital gains, inheritence tax should be reduced or aboloshed.
John Redfern is positive in many of his groups tax proposals, but is at odds on "green flight levy". Moderation and compromise is required on the airport issue. Yes, tax levy on kerosene and flight, but no to a ban on airport development.
Council Tax reductions on carbon zero/ neutral homes makes sense such as householders who install Solar ready hot water tanks, heat solar panels and the latest most efficient combi boilers in an integrated system, 10 inch loft insulation, as well as PV solar tiles or mini wind turbines where appropriate.
Taxing "Gas Guzzlers" makes sense whether by diiferential tax licencing duty or by fuel escalator tax,; but also tax breaks if one drives a bioethanol Ford Focus or Hybrid Toyota/Honda car.
Rob Whittle, Norwich, England
He suggests that the Tories give discounts on council tax for energy friendly homes. This means pretty well all new homes and the well off who can afford to have windows, appliances etc. updated. No, no, no, this is a tax relief that will be unavailable to millions especially those on low incomes. This is where the political parties are falling down, none of them have produced any ideas to help those paying council tax on incomes just above the benefit level. If this scheme should see the light of day, these are the people who will be subsidising those in a position to benefit from a very discriminatory tax. Not a very level playing field.
Christine Melsom, Isitfair, Headley, Hampshire, England
Wow, 2 supporters for Windmill Dave!
Ian Burgess, Bristol,
This is the sort of radical thinking that won supporters of the Conservatives back in 1979. Well done. At last a policy with a Carrot, not a stick. Which is more than I can say for Mr Browns fancy HIP, which just sets out to make people pay more to sell their house with no real benefit to the seller. Already solicitors are insisting home-buyers get their own house surveys done as HIPS provided by the vendor are inadequate, don't have any legal precedent and don't speed up the house-moving process.
GDP and HPI could both be used as a measure of national progress. Also the conservatives could scrap the CPI . It's no good telling us that a loaf of bread costs less than it did 20 yrs ago, when indirect tax increases on working families mean we can only afford to buy 3 loaves of bread instead of 4. Der!
Don't give away too many of your ideas before a general election. Robber brown will adopt these as his own.
We want power to change things, not a grand coalition as in Germany.
Politico Bloggs, Swindon, England
I guess the dinosaurs from the looney right, who wish to stay in opposition for ever will start shouting their mouths off.
d case, newquay,
If Cameron gets this accepted, I, who have never voted Conservative or even remotely considered it, would seriously consider breaking a lifetime's resolution.
Geoff Naylor, Winchester, UK
So - a millionaire living in a ten bedroom house in Weybridge with pool and gym can avoid stamp duty and reduce Council Tax by being fully insulated, while a pensioner in a draughty small cottage appropriate to her needs but who can't afford building works pays the full whack.
Frederick Fernackapan, Kingston, UK
Stand by television power is a good example of selective statistics. With old CRT sets, it's correct. However, I measured our LCD set today, on standby it pulls about 1.4W. So it takers 45 times longer to use the same power as a modest 60W lamp.
Of course we must save energy, if only because fossil fuel will run out, but not at the price of missing the next climate change alarm because the TV took so long to re-boot after being deprived of it's meager ration of power!
David Lambert, petersfield,
The ace card being played here by Cameron is to offer tax cuts, whereas his rivals seek to impose taxes. Typically, John Redwood hasn't grasped the difference between offering a tax cuts an incentive, rather than demanding extra taxes as a disincentive. This makes me fear that a Conservative Government isn't yet likely to work well as senior members of the party have yet to grasp Cameron's way of thinking.
However, after years of left-wing "if it exists, tax it" policies, the possible opportunity to breathe the fresh air of tax reductions is well worth the risk. Some may fear reduced government as weak government, but the last avowedly tax-reducing government was under Mrs. Thatcher.
Dzerjb, Exeter, UK
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