Reaching net zero – is the tax system ready?
Rt Hon David Gauke joined our panel to discuss how the government should adapt the tax system to reach net zero.
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How we are taxed will be crucial to how government pays for net zero. It can use the tax system to incentivise sustainable choices by businesses and consumers as well as disincentivise harmful ones. But government revenues will also fall as people and businesses adapt their behaviour to reduce carbon emissions, with the shift to electric vehicles set to eliminate fuel duties.
So what changes are needed to ensure the tax system raises revenue to fund public interventions, redistributes the costs of getting to net zero, and shores up the tax take as fuel duties decline?
This event was held after a busy autumn of net zero strategies, a budget and COP26. It asked how the government should adapt the tax system to reach net zero and whether the budget was a missed opportunity, look at the steps being taken in other countries, and set out how to overcome the barriers – political and otherwise – to reform.
On our panel to discuss these issues were:
- Rt Hon David Gauke, Head of Public Policy at Macfarlanes LLP and former Financial Secretary to the Treasury
- James Murray MP, Shadow Financial Secretary to the Treasury
- Chris Stark, Chief Executive of the Committee on Climate Change
- Amanda Tickel, Head of Tax & Trade Policy for Deloitte UK
The event was chaired by Dr Gemma Tetlow, Chief Economist at the Institute for Government.
This event is kindly supported by Deloitte LLP.
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