How green was thy budget?

Prior to becoming Chancellor, George Osborne said the Treasury should put a fair and predictable price on environmental externalities - that means taking account of the harmful impacts of industries, such as pollution, resource depletion etc..  Well, the RSPB provided him with an excellent opportunity to do so – introduce a peat levy.  What a shame he’s failed to use this Budget as an opportunity to introduce a fiscal measure which would have supported the government’s objectives to phase peat use out of horticulture. In terms of carbon alone, UK peat consumption imposes an external cost of £32.5m. Add in the biodiversity loss and that’s a pretty sizeable externality (as the economists say) or a lot of harm (as you and I might say).

Our call for a levy on peat-based growing media, offering incentives for gardeners and the horticulture industry to switch to peat alternatives, is backed by many of the 'greener' members of the industry and a range of NGOs.  It could alleviate damage done by peat extraction, stimulate economic growth in the green alternatives' market, reduce waste and raise much-needed revenue for nature conservation.  It’s too good an idea to give up on, so we won’t be.

But with the voluntary approach having failed for years and no fiscal measure introduced now, is it time to go back to the least-liked measure - regulation?  If pleading hasan't worked and fiscal tinkering isn't tried what about a cheap, effective ban?  Or if not, then what have George Osborne, Chris Huhne and Caroline Spelman got up their sleeves?  Please let us know what your strategy is for eliminating peat's 'externalities'.  Is this 'greenest government ever' still committed to doing something about peat?

The absence of new green measures and back-tracking on existing initiatives is further compounded by the removal of successful existing projects such as the ALSF.  The Aggregates Levy Sustainability Fund represents huge value for money. The evidence indicates the Fund enables substantial gains for biodiversity, the reduction of CO2 emissions within the sector, and could continue to deliver significant environmental gains at low cost in the future.

These are, of course, very difficult times. Weak growth and inflation are not helping deficit reduction. Public spending is now set to fall faster than at any time since post-war demobilisation. Many austerity measures kick in this April and the squeeze on public services, from capital spending, local authorities, agencies and central departments will be severe and prolonged.  It’s easy to see why the Chancellor is tempted to make motoring and holiday flights that bit cheaper to lighten the gloom a little. Until our politicians realise that our environment underpins our economy and is core to our well-being, it seems they will continue to sacrifice long term well-being of our planet for what is politically expedient today.

In the same speech George Osborne went on to say ‘If I become Chancellor, the Treasury will become a green ally, not a foe.’   Well, with allies like this, we can’t afford too many foes.