GWPF: Carbon tax will cost local councils and house buyers £1.6bn

Jake Carter

March 16, 2020

Local councils and house buyers will be the first to feel the £1.6bn cost of the chancellor’s new carbon tax, according to the Global Warming Policy Forum (GWPF).

The government is increasing fuel tax on diesel to the parts of the construction industry by 400%, equating to an increase from the discounted level of 11.14 pence per litre to the standard 57.95 pence per litre.

This results in an increase in annual fuel costs to the UK of an estimated £1.6bn per year.

A large part of this burden will fall on the construction industry, particularly on local authorities through the costs of road maintenance contractors, the running gritters and snow clearers.

Additionally, homebuyers will be affected; the construction industry is reported as estimating that the new carbon tax will increase the cost of house building by £5,000 per house.

Dr Benny Peiser, director of the GWPF, said: “Increasing tax on diesel fuel used by the construction sector, and others, has far-reaching consequences for Local Authorities, the cost of national infrastructure projects such as HS2 and for house buyers.

“But that’s carbon taxation for you.

“Carbon taxes reveal the true and rising cost of climate policies, makes everything more expensive and will become politically toxic.”

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