An alternative to green taxes

This issue keeps appearing in the press and on the news. However, whilst most of the UK accept there is a need to tackle climate change and overt what is deemed to be a major catastrophe, most of us do not want to be financially punished in order to achieve this.

My partner, a trained meteorologist, and I decided 2 years ago to change our electricity supplier to help do our bit. We opted for a supplier which guaranteed to source 100% of the energy we use from renewable sources and put that back into the national grid. This is costing us about £50 per year more than our previous electricity supplier, but we saw this as our way of contributing just a little to the sustainability of the environment.

This got me thinking, however, about the millions of people in the UK who are living in poverty. These people do not have a choice like the one my partner and I made. This also got me thinking about the number of households who, in our consumer society, will be put off because of the small but significant financial impact it could have on them.

Then my Eureka moment came. Instead of taxing people more, you could give reduce or abolish VAT on green options. This would make green energy more affordable and competitive in the energy market.

I am aware that some green energy options guarantee only a portion of their energy comes from renewable sources (most are either 10% or 30%). In this instance the reduced or abolished VAT would go on this proportion of the bill. Therefore in the case of someone who has opted for a 30% option and VAT had been abolished, they would pay VAT on 70% of the energy but not on the other 30%.

If the government is serious about tackling climate change, then this may be the huge step forward in thinking that is needed. And due to the low number of households opting for green energy options at present, the impact on the country's coffers will be minimal.

I am very interested to hear what people think about this.

Alternatively, if you like this idea, you could contact your MP. You can contact all MPs using the facility on this page: http://www.upmystreet.com/commons/l/