§ Sue DoughtyTo ask the Chancellor of the Exchequer what general mechanisms he has identified to internalise environmental costs in the economy; and if he will list those instances where he(a) has implemented such a mechanism, (b) plans to implement such a mechanism and (c) plans to investigate possible mechanisms for implementation in the medium to long term. [165271]
§ John HealeyThe Government's approach to environmental taxation was set out in the statement of intent on Environmental Taxation in 1997. This was developed further in Tax and the Environment: Using economic instruments' published alongside the 2002 Pre Budget Report, which also considered the role of tax alongside other economic instruments instruments such as tradable permits. Since 1997 the Government has introduced a number of economic instruments, which seek to internalise environmental costs in the economy such as the aggregates levy and UK Emission Trading Scheme. A list of fiscal measures that the Government has introduced can he found in table 7.2 of the recent Economic and Fiscal Strategy report.
§ Sue DoughtyTo ask the Chancellor of the Exchequer (1) what consideration is given to the cost of climate change in the determination of his economic strategy; [165272]
(2) what consideration he has given to the cost of diffuse industrial pollution in his economic strategy. [165273]
§ John HealeyThe Chancellor considers all relevant economic, social and environmental factors, including the implications for climate change and water quality, when determining the Government's economic strategy. It is one of the Treasury's objectives to protect and improve the environment by using instruments that will deliver efficient and sustainable outcomes through evidence-based policies, as set out in "Tax and the environment: using economic instruments", published alongside the 2002 Pre-Budget Report.