Green or not? You decide on Darling's Budget

Today was Budget day, one of Westminster's biggest annual feeding frenzies. It has long been trailed as the 'greenest' Budget, too, a crucial step in reaching the government's own target of reducing UK carbon emissions by 80 per cent by 2050.

So we want you tell us if you think Chancellor Alistair Darling has done enough to green Britain's businesses. Did he provide the encouragement that some businesses need to change their ways or is this another missed opportunity?

The case for
The measures to cut business emissions in the Budget have unsurprisingly been overshadowed by other environmental issues such as the freeze on fuel duty and the plan to scrap plastic bags. But cutting business emissions is vital given that industry, business and the public sector contribute 19 per cent of the UK's total carbon emissions. The relevant chapter for the budget can be read in full online and we've summarised the most important points below.

• Reform of company car tax by replacing the capital allowance treatment for business cars with an emissions-based approach. This effectively gives a lower capital allowance for cars whose emissions are above 160g/km. The government will also freeze company car tax rates on cars with emissions below 135g/km
• The climate change levy will go up in line with inflation. This measure is targeted at reducing energy consumption in energy-intensive industries, and is expected to reduce business energy consumption
• Energy suppliers will be required to provide smart meters for medium and large businesses within the next five years. This should help businesses monitor their energy use more accurately and efficiently, and help them identify any possible savings
• All new non-domestic buildings need to be zero-carbon from 2019. The government will consult on this timeline and expects this to have a massive impact on emissions, saving 75 million tonnes of CO2 in the next thirty years
• In order to help reduce the carbon emissions of existing building stock, the government is encouraging microgeneration projects, by not reassessing business rates and other unspecified fiscal instruments

The case against
Pressure groups have roundly criticised the budget, particularly on the freeze on fuel duty. Friends of the Earth says that motoring is actually cheaper now than it was ten years ago and that the fuel duty rise should go ahead. Greenpeace called for higher taxes on gas-guzzling cars to be spent on improving railways. But what of the measures specifically targeted at businesses? It appears that few had anything to say about them, although the CBI praised the plan to go to zero-carbon buildings.

What we think
Although some of the ideas behind the measures are great, the timelines and commitments show no sign of urgency. Zero-carbon buildings, for example, can play a massive part in reducing business' carbon emissions, but the government is giving the building industry over ten years to work out how to get its act together, with consultations scheduled to allow lobbyists to muddy the waters even further.

While the plans for reform of company car tax might encourage users to choose slightly more fuel efficient cars, it should have been much more radical. There is no mention of electric cars and gas-guzzling cars get no extra penalty beyond the general showroom charge. And finally, while microgeneration projects should be encouraged, the financial incentives look to be almost circumstantial. Overall, it hardly adds up to a green budget for businesses.

What do you think? Do you think the Budget is as 'green' as the government claims? Or is it going to do some good and provide incentives for businesses to lower carbon emissions? Hit the comments below and let us know.

Related Links

• SmartPlanet