BORIS Johnson’s Net Zero plans could leave a massive financial blackhole touching £100 BILLION a year, Rishi Sunak warned last night.
Doomsday Treasury analysis of the Government’s pledge to go carbon neutral by 2050 warned of job losses, new taxes and turbo-charged inflation from “sustained” green spending.
Yesterday the Prime Minister unveiled his long-delayed Net Zero Strategy that will see new petrol cars phased out from 2030 and gas boilers axed in 2035.
But on the same day the Chancellor publicly warned new “motoring taxes” would be needed on electric cars to fill the £37 billion void in Treasury coffers raised currently in fuel duty and car taxes
By 2035, Rishi’s “reality check” document warned that the blackhole in lost tax revenue would be equivalent to 1.6 per cent of Britain’s GDP.
And at the same time up to 2 to 3 per cent of GDP a year will be required in investment to decarbonise Britain’s factories, building sites, homes and offices.
On current figures that could top £60 billion every year, leaving Sunak with a £97 billion green blackhole to fill.
And he clearly warned Brits wallets were under threat, stating: “The government may need to consider changes to existing taxes and new sources of revenue throughout the transition in order to deliver net zero sustainably.”
Yesterday Mr Johnson unveiled a £90 billion investment in Britain to help lead a private sector led charge to held the country go green.
But that cash falls far short of the dwindling tax returns the country faces.
But last night the Treasury insisted the spending must go ahead, saying: “The cost of inaction is far greater than the cost of getting to net zero.
“If we don’t act, increased health spending would become necessary as a result of pollution and increased ill health for example.”
Mr Johnson’s Net Zero strategy pumped billions into electric car grants, charging points, planting trees and cash for making homes greener.
The long-delayed plans were finally revealed just 10 days before the PM hosts world leaders at the COP26 Glasgow summit – where he will press them to commit to their own green goals.
New cash announced yesterday included another £620million for electric cars.
Drivers can get up to £2,500 towards the cost of a pricey new electric car, but ministers keep slashing the cash up for grabs as more people start making the swap.
All cars will have to be zero emission ready by 2035, the green plans confirmed. And car manufacturers will get new targets to sell certain numbers of EVs or face penalties too.
New nuclear power stations will help to produce green electricity, with a new £120million to fund mini-reactor research.
Ministers will decide on at least one new mega nuclear site by 2024, and what to do about whether to use hydrogen in homes by 2026, after extensive trials to see if they are safe.
And they confirmed they will press ahead with plans to force mortgage lenders to include the energy performance of homes in their calculations.
‘PLAN FALLS SHORT’
Home-owners could face forced energy improvement updates on their properties to make homes warmer and less leaky.
Energy minister Greg Hands told the Commons: “This is not just an environmental transition, it represents an important economic change too.
But sceptical MPs raised concerns about the huge cost of the green plans, just after Britain has spent billions of pounds on the Covid response.
And greenies accused ministers of a “burn now, pay later” strategy which is now fit for purpose.
Shadow business secretary Ed Miliband said: “The plan falls short on delivery, and while there is modest short-term investment, there is nothing like the commitment we believe is required,” pointing the finger at Treasury involvement in preventing more action.
“My fear is this plan will not deliver the fair, prosperous transition we need equal to the scale of the emergency we face,” he warned.