IEMA reacts to UK government's spring statement

23rd March 2022


IEMA has called on the UK government to invest more in low-carbon transport following its cut to fuel duty in today's spring statement.

Chancellor Rishi Sunak announced this afternoon that fuel duty for petrol and diesel will be slashed by 5p per litre from 6pm tonight – a tax cut worth £2.4bn – despite environmental concerns.

The move has been driven by the cost-of-living crisis, with the Office for Budget Responsibility (OBR) announcing earlier that living standards are set for a historic fall over the next 12 months.

Moreover, Russia’s invasion of Ukraine is forecast to push inflation to a 40-year high of almost 9% as energy prices soar.

IEMA CEO, Sarah Mukherjee MBE, said: “While we recognise the need to address the cost-of-living crisis and the 5p/litre cut in fuel duty, a key medium-term test of the government’s climate change ambition will be whether it invests more in lower-carbon transport including walking and cycling.”

Today's spring statement also sets out a series of measures to help businesses boost investment, innovation, and growth – including a £1,000 increase to the Employment Allowance, benefiting around half a million smaller firms.

Furthermore, the chancellor said that he will examine how the tax system – including the operation of the Apprenticeship Levy – can be used to encourage employers to invest in adult training.

VAT on energy-saving materials such as solar panels, heating pumps and roof insulation will also be cut from 5% to zero for five years to help families become more energy efficient.

Mukherjee continued: “We welcome the chancellors' announcement that the government will incentivise investment in skills, training, and research and development, which will create opportunities to unlock further private sector funding to accelerate the UK towards a net-zero future.

“IEMA will work closely with the government and industry to ensure green skills are central to this programme. The removal of VAT on home energy efficiency and renewables is also a positive step that supports the net-zero transition and enhances our energy security.”

Image credit: Shutterstock

Subscribe

Subscribe to IEMA's newsletters to receive timely articles, expert opinions, event announcements, and much more, directly in your inbox.


Transform articles

Fake news

Disinformation about the impossibility of averting the climate crisis is part of an alarming turn in denialist tactics, writes David Burrows

6th June 2024

Read more

Rivers and waterways across England and Wales are increasingly polluted by sewage spills. What is causing the crisis and what is being done to tackle it? Huw Morris reports

31st May 2024

Read more

In January, the Welsh government consulted on a proposed white paper, 'Securing a Sustainable Future: Environmental Principles, Governance and Biodiversity Targets for a Greener Wales'.

31st May 2024

Read more

Gillian Gibson calls for urgent action to avoid environmental tipping points

20th May 2024

Read more

Support for net zero remains high across the UK and the EU, but the majority of citizens don't believe that major emitters and governments will reach their climate targets in time.

16th May 2024

Read more

Media enquires

Looking for an expert to speak at an event or comment on an item in the news?

Find an expert

IEMA Cookie Notice

Clicking the ‘Accept all’ button means you are accepting analytics and third-party cookies. Our website uses necessary cookies which are required in order to make our website work. In addition to these, we use analytics and third-party cookies to optimise site functionality and give you the best possible experience. To control which cookies are set, click ‘Settings’. To learn more about cookies, how we use them on our website and how to change your cookie settings please view our cookie policy.

Manage cookie settings

Our use of cookies

You can learn more detailed information in our cookie policy.

Some cookies are essential, but non-essential cookies help us to improve the experience on our site by providing insights into how the site is being used. To maintain privacy management, this relies on cookie identifiers. Resetting or deleting your browser cookies will reset these preferences.

Essential cookies

These are cookies that are required for the operation of our website. They include, for example, cookies that enable you to log into secure areas of our website.

Analytics cookies

These cookies allow us to recognise and count the number of visitors to our website and to see how visitors move around our website when they are using it. This helps us to improve the way our website works.

Advertising cookies

These cookies allow us to tailor advertising to you based on your interests. If you do not accept these cookies, you will still see adverts, but these will be more generic.

Save and close