By David Williams
The government has been urged to introduce a green fiscal stimulus to fight the recession and convert Britain into a low-carbon economy.
A report by the Commons environmental audit select committee said it was ‘imperative’ that next month’s Budget included a coherent green package.
In Green fiscal policy in a recession, released on March 16, the committee expressed disappointment at existing policies.
A £535m scheme announced in last year’s Pre-Budget Report was dismissed as too small and likely to be offset by spending cuts in 2010/11.
The MPs criticised the fiscal stimulus plans for committing investment to road schemes and called for the net environmental impact to be assessed.
Ministers were urged to prioritise the energy efficiency of existing buildings and to introduce green investment strategies for the banks in which the government has a controlling interest.
The burden of taxation should also be shifted, the committee said, to penalise resource-intensive activities such as aviation and motoring.
