Revenues from climate change levy rocketing

A major green levy has seen the fastest growth in revenue collected by the taxman in the ten years since the collapse of Lehman Brothers, according to a new study.

Accountancy group UHY Hacker Young said businesses have been hit with £1.9 billion in tax just from the climate change levy in the last year, up from £690 million in 2007-8.

This represents a rate of growth more than five times faster than the overall increase in HMRC receipts over the same time frame, the firm noted.

UHY Hacker Young said the high cost of many green taxes had led to some commentators calling for the UK government to have a revenue neutral green tax policy.

Partner Clive Gawthorpe said: “Although fighting climate change is a very worthy cause, these are some eyewatering rises in tax revenue. Most businesses would like to see more carrot and less stick – tax incentives and not extra taxes.”