The budget: green shoots, or greenwash?

16 April 2009

'Promises of a "Green Budget" must be backed up with action if they are to be anything more than greenwash. So far, the Government's rhetoric has run well ahead of its record, with just 7% of the UK's economic stimulus package categorised as "green", little more than a fig leaf to hide the Government's environmental modesty.'

This was the view of Neil Sinden, Policy Director at CPRE, commenting ahead of next week's Budget statement. The Budget offers an excellent opportunity to prioritise a green route out of recession, with short and long term benefits for both housing and transport policy.

Housing policy

Now is the time for new incentives to promote regeneration, bring empty buildings back into use and protect greenfield land from development.

Neil Sinden said:

'Alistair Darling should seize the opportunity to cut VAT on building repairs and conversions, while levying it at 15% on development on greenfield sites. This would boost urban regeneration, and remove the perverse incentive to leave existing buildings in a state of disrepair even as green fields are buried under a tide of concrete.'

Neil Sinden continued:

'The Chancellor should also use his Budget to demonstrate that the era of regarding housing as an ever-expanding speculative investment is over. It's time to be clear that homes are places for people to live in. Mr Darling should remove barriers to investment in private rented housing, and make a stronger commitment to the provision of affordable social housing, particularly in rural areas, where there is a great need.

'This Budget is also the Government's chance to show it is serious about transforming existing buildings, to increase their energy efficiency, cut their contribution to climate change and generate thousands of jobs.'

Transport policy

The Budget also provides the opportunity for new approaches in transport policy, both to increase transport accessibility for rural communities and to reduce the massive contribution of the transport sector to the UK's carbon dioxide emissions.

Ralph Smyth, Senior Transport Campaigner at CPRE, said:

'Alistair Darling must seize the chance to execute a gear change on transport policy, and show that the Government regards climate change as more than "a load of tree-hugging hoolah".

'The Government should back a massive increase in low-carbon car clubs. In this way, significant numbers of cars would be taken off the road and emissions and congestion would be reduced.

'This approach would make more sense than the mooted car 'scrappage' scheme. This will do nothing to help rural families that can barely afford to keep their current car on the road, let alone buy a new one. Rolling out community-run low carbon car clubs would give people real choice on their car use.'

Ralph Smyth continued:

'Mr Darling should also be bold at this time by sticking to a 2p increase in fuel duty. The revenue from this rise could go towards addressing the maintenance backlog on local roads, and on prioritising bus, cycling and walking routes. This would be good for the environment, while simultaneously providing a shot in the arm to rural economies.'

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