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NEWS STORY

GREEN SMOKESCREEN HIDES TAX GRAB
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| March 12, 2008 |
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The Chancellor is using claims of tackling social and environmental ills as an excuse to take yet more tax from hard-pressed businesses and consumers. His emphasis on carrier bags as a cause of climate change is outrageous. He has failed to offer significant incentives that could make a real difference to the environment and to the economy.
Reacting to today's Budget (Wednesday) the British Retail Consortium (BRC) said Alistair Darling was simply trying to disguise the need to plug holes in his finances.
Stephen Robertson, Director General of the British Retail Consortium, said: "We'll need to look beyond the headlines to the inevitable unannounced detail before we can fully assess this Budget, but it's clear the Chancellor has huge holes in his accounts and is trying to hide an old-fashioned tax grab behind a bags and alcohol smokescreen.
"Retailers are driving efforts to achieve social and environmental objectives but the Chancellor's green tax gimmickry is simply an excuse to take yet more money from hard-pressed businesses and consumers."
On compulsory carrier bag charges, Stephen Robertson said: "It's outrageous to suggest carrier bags are a major cause of climate change. There are many more significant contributors. Why does the Government believe improving the energy performance of homes only deserves a feeble £26 million?
"Retailers have already committed to reduce the environmental impact of plastic bags by a quarter by the end of this year. Huge progress has been made without any need for legislation.
"Customers took a billion fewer bags in the last 12 months and retailers are over half way to achieving the target on cutting the use of new plastic. This shows bans or taxes are not the only way.
"By setting a date for legislation the Government appears to have jumped to a verdict already, abandoning their agreement. Retailers take their environmental responsibilities very seriously, but want policies that are based on clear evidence, rather than knee-jerk reactions to highly emotive campaigns."
On increased alcohol taxes, Stephen Robertson said: "We share the Government's concerns on responsible drinking but are not convinced that raising the price of alcohol through taxation is the correct solution. The key issue is changing our culture and encouraging awareness of sensible drinking, a process retailers are committed to working with Government on as part of its alcohol strategy. The problem with taxation on alcohol is that it's a blunt instrument that raises the price to millions of consumers who drink responsibly."
On incentives for companies to use greener vehicle fleets, Stephen Robertson said: "While focussing on the tax regime for cars, the Chancellor has ignored our calls to reward the use of greener vehicle fleets. Voluntarily, retailers are investing massively in achieving more efficient transport, including electrical and bio-fuel vehicles. This should be recognised and encouraged.
"The Chancellor has also done nothing to reduce VAT on energy-efficient products, such as low-energy light bulbs and efficient household appliances. If he had it would have made them more affordable for customers, supported retailers' efforts at promoting these goods and made his first Budget genuinely green." On Crossrail and funding local infrastructure projects, Stephen Robertson said: "We're seriously concerned at the Chancellor's claim that ‘Crossrail funding has been secured'. He certainly hasn't explained how. Does this mean he has decided, without consultation, to give local authorities the power to impose Business Rates Supplements?
"Retailers already pay £4.5 billion a year in business rates, more than any other sector. Giving local authorities powers to demand more could see retailers paying out an extra £130 million. The Government must guarantee tight controls to stop local authorities abusing these supplements as another indiscriminate burden on struggling businesses."
Media Contacts: BRC Press Office 020 7854 8924 Out of hours 07921 605544
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