Recycled Policy? Sunak's 'Green' Budget Unpacked

A week after unveiling the Net Zero Strategy, the Government has incentivised flying and driving more

James Gard 28 October, 2021 | 9:55AM
Facebook Twitter LinkedIn

airplane image

This latest Budget was light on new announcements relating to the Government’s green targets. The Chancellor, Rishi Sunak, briefly mentioned a £107m boon for offshore wind in Teesside as part of a wider discussion on infrastructure. But then he swiftly moved on. In fairness, last week the Government had already laid out a detailed programme as part of its Net Zero Strategy (NZS). Let’s look at at the some of the UK’s carbon commitments, short and long term.

Driving and Flying

With COP26 about to start in Glasgow, you could argue the Budget was not very green at all. Another freeze in fuel duty rises, as well as cuts to domestic airline taxes, reinforce the status quo for drivers and frequent flyers. AJ Bell investment director Russ Mould says these policies “hardly encourage habitual drivers to change their behaviour”, but adds the Government needs to balance its long-term environmental targets with short-term economic pragmatism. Essentially, its keen to encourage workers back to their offices after lockdowns, and drivers have already had to deal with petrol shortages and rising pump prices in recent weeks.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

About Author

James Gard  is content editor for Morningstar.co.uk