Officials from the Treasury and HMRC were subject to some tough questioning from the Public Accounts Committee (PAC), as part of its continuing inquiry into environmental taxes. This included evaluation of green tax measures and how great a role tax has in the Government’s strategy for achieving ‘net zero’.

A new report by the National Audit Office (NAO) examines how the Treasury and HMRC manage tax measures with environmental objectives, including the work undertaken to design, monitor and evaluate them. It explores how these ‘exchequer departments’ use their resources to manage the relationship between the wider tax system and the Government’s environmental goals, including its statutory commitment for the UK to achieve net zero greenhouse gas emissions by 2050.

The House of Commons Environmental Audit Committee (EAC) published its ‘Growing back better: putting nature and net zero at the heart of the economic recovery’ report last week (17 Feb) which includes a call for VAT reductions to encourage energy efficiency, the use of recycled materials, and repair services.