Sunak: Government is ‘mindful’ of economic cost of climate change

Rishi Sunak has reassured MPs the Government is “mindful” of the economic cost of climate change, as he was pressed on the tax increases “reaching net zero are going to entail”.

The DUP’s Sammy Wilson (East Antrim) branded Cop26 a “climate circus” before warning the Chancellor about the “huge costs” of the Government’s net-zero strategy.

Mr Wilson said: “Given the commitments which the Prime Minister is making at the climate circus in Glasgow this week, how can the Chancellor possibly say that public finances will be managed effectively when the huge costs of net zero are not even published by the Treasury, let alone known by the public, and we are already seeing taxes increasing to pay for the huge infrastructure changes which reaching net zero are going to entail?”

Mr Sunak replied: “I very much appreciate (his) concern about the cost of transitioning to net zero. What I’d say to him is the Government is also mindful of those costs.

“The net-zero strategy… sets out a comprehensive approach to transitioning backed up with £30 billion of investment and indeed, as a result of the spending review and Budget the Northern Ireland Executive will receive on average about £1.5 billion a year in Barnett consequentials to help fund priorities as they require.”

The Government’s net-zero strategy was also questioned by Labour, with shadow Treasury minister Abena Oppong-Asare criticising the decision to cut air passenger duty for domestic flights.

She accused the Chancellor of “flying in completely the wrong direction” on climate change.

Ms Oppong-Asare told MPs: “At last week’s Budget, the Chancellor did not use the word climate once. On the biggest issue of our time he had nothing to say.

“Alongside the decision to cut domestic air passenger duty, which will lead to 400,000 domestic flights a year, the Chancellor failed to invest in public transport.

“He is subsidising those who can already afford to take domestic flights while putting up taxes on ordinary people.

“How on earth does the Chancellor think this sends the right message as Cop26 summit begins? Isn’t it the reality, he is flying in completely the wrong direction when it comes to tackling climate change?”

Treasury minister Lucy Frazer insisted the Government published a net-zero strategy the week before the Budget and the Chancellor had made “significant progress” bringing other countries together on climate finance issues, adding: “The Chancellor, together with other finance ministers, is making sure that we help reduce net-zero emissions and through a number of measures.”

SNP MP Richard Thomson (Gordon) also criticised the air passenger duty cut for domestic flights, noting the Chancellor could have done something “really clever” if he had “incentivised the use of low-carbon forms of transport”.

He said: “How on earth, in the week of Cop26, is this contributing to the Government’s net-zero efforts?”

Mr Sunak noted that in the Budget there was also a “new ultra long-haul ban introduced with a higher rate” which, according to an independent forecast, “would actually reduce carbon emissions”.

He added: “That comes alongside significant investment to incentivise sustainable aviation fuel, £180 million and billions more for electric transportation for consumers as well.”

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