Public enthusiasm evident for a greener tax system

Easy green choices are favoured by the public, but policymakers should make it simple says a Green Alliance report.

'There is clear public enthusiasm for a tax system which makes greener choices the easiest choices,' says a report released by the UK's Green Alliance. 'But people will not automatically accept any changes made and policy makers must understand the public’s views and work to build trust and acceptance of both short- and long-term reforms'.

In spring 2021, BritainThinks carried out a representative survey of the UK population to explore the issues in more depth, to develop criteria that would build public support for environmental tax changes and to give their verdict on specific reforms the government could consider.

Greening VAT was the most popular reform to emerge from the process. This would promote activities such as housing renovation over new build and product repair over new purchases. 

The respondants supported environmental taxes, under the following conditions:

• Fairness - There was a desire for those who cause the most damage, whether businesses or the public, to pay the highest costs, in line with the ‘polluter pays’ principle. Jurors also wanted a system that enables environmentally beneficial behaviour, rather than one that simply punishes damaging behaviour.
• Effectiveness - A greener tax system should mainly aim to improve the environment, not raise revenue. Many also felt that the revenues should be ring-fenced for green projects and to help low-income households, who may be disproportionately affected.
• Transparency - There is limited knowledge of how their choices affect the environment and a desire for visible tax measures as guidance.
• Administration - Preference for taxes that are easy to understand, administer and collect.

The report is available to read here