Other household measures included meeting the demand for microgeneration technologies such as solar, micro-wind, micro-hydro and small-scale fuel cells, by increasing the funds available through the Low Carbon Buildings Programme to a total of over GBP18 million.
Mr Brown also tackled automotive emissions, announcing that, over the next three years, the duty rates for the most polluting cars would rise to GBP400, while rates for cleaner cars would fall to GBP35. In addition, the chancellor proposed a review to examine vehicle and fuel technologies that could ‘decarbonize’ road transport over the next 25 years.
Although the chancellor outlined a two pence per liter (ppl) increase in fuel duty, this will not be effective until October 1, 2007. There will also be increases in the next two years of two ppl and 1.84ppl, respectively. Mr Brown also came out in support of biofuels, and will extend the 20ppl biofuels duty differential to 2009-10.
Although the budget introduces numerous energy-saving measures, there are those who think Mr Brown has not gone far enough. Price comparison website uSwitch.com commented that the chancellor should have removed VAT from green electricity tariffs. The website cited a recent survey it had commissioned, saying that 53% of UK consumers believe that the government should give consumers an incentive to switch to green electricity.
In a press release, uSwitch commented: He will not have gone far enough to satisfy the majority of consumers and, by not removing the 5% VAT on green energy tariffs, has missed the opportunity to encourage greater take-up of green tariffs and potentially galvanize the energy companies into taking more action.
