RSS feedsAlistair Darling’s first pre-Budget report is due in October, but the overall feeling, from an environmental perspective, is not to expect too much.
Gordon Brown has been in negotiations with Europe to reduce the VAT percentage on energy efficient products for some time, so far with no success.
Daniel Lyons, tax partner at Deloitte, believes that Darling will not be making any major changes. However, he goes on to say that the government has brought about tax reforms – such as landfill – at the right pace, giving companies the chance to adapt.
According to PricewaterhouseCoopers tax partner John Manning, if Darling were to use the pre-Budget report to target environmental policy, there could be more emphasis put on carbon trading, branching out to incorporate more companies and sectors. He adds that it makes good business sense for companies to wisen up on efficiency so as not to be hit with the carbon-tax stick.
