Gordon Brown is planning to freeze fuel duty again in the budget on Wednesday, to the fury of environmental campaigners who accuse the government of "pathetic" inaction on climate change over the past nine years. The chancellor will also announce a rise in road tax for so-called "Chelsea tractor" 4x4s of about £30 to £200 a year, something Friends of the Earth says will do absolutely nothing to curb the use of gas-guzzling cars on Britain's crowded roads.
Mr Brown will say he plans to increase duties in line with inflation but delay the rise until September. In each of the past two years, however, a similarly announced increase was not implemented because of high oil prices. The government is wary of fuel protesters who in September 2000 threatened to bring the country to a halt. If oil prices remain high this year, the September increase is unlikely to happen. Each freeze costs the government about £600m a year in lost revenue.
"This government's performance on climate change, in spite of all the grand speeches, is becoming ever more disappointing," said Tony Juniper, director of Friends of the Earth. The green campaign group says the cost of motoring is now cheaper in real terms than it was in 1997 or the mid-1970s after the oil shock of 1974. "It is incredible and pathetic that the chancellor can leave fuel duty unchanged at a time when the cost of using public transport is going up."
Friends of the Earth is calling for the road tax on big, four-wheel-drive cars to be raised to £300 immediately and to £600 by 2008. It wants the road tax on environmentally friendly cars to be cut to zero. It accuses the Labour government of dishonesty over its green policies because in 1997 environmental taxes accounted for 9.5% of all tax revenues but are only 8.3% now, at a time when carbon dioxide emissions have risen. It wants Mr Brown to use the budget to encourage greater energy efficiency and increased use of solar panels and to lower council tax and stamp duty for low-carbon, energy-efficient homes.
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http://www.guardian.co.uk/climatechange/story/0,,1734955,00.html