Rural areas 'hit' by higher taxes

West Midlands taxpayers are paying millions of pounds too much in green taxes than is needed to offset the levels of carbon emissions in their areas, according to a survey.

Startling figures produced by the Taxpayers' Alliance show huge variations between the excess taxes paid in different local council areas, with people living in rural areas particularly hard done by.

For instance, Birmingham, Britain's biggest local authority, pumped an estimated 7,835,000 tonnes of carbon into the atmosphere last year - the highest total nationwide.

The city's total green taxes added up to £269.1 million but the excess per person calculated by the TPA worked out at £210 per head, putting Birmingham's citizens way down the league table.

Citizen

North Shropshire by contrast produced an estimated 680,000 tonnes of carbon emissions and paid £31.7 million in taxes.

But the excess per citizen was £446 - the 78th highest in the country.

The green taxes and charges taken into account by the alliance were fuel duty, road tax, climate change levy, renewable energy obligation, and landfill tax.

United Nation figures for the UK's carbon footprint indicate that last year taxpayers paid £19.6 billion more than was necessary, and the Government's own figures show that they paid £7.9 billion too much.

The Taxpayers' Alliance said that in 2007-08, the total burden of green taxes and charges after deducting spending on roads, as £24.2 billion - up from £22.7 billion in the previous year.

Based on UN figures, the alliance put the "social cost" of greenhouse gas emissions at £4.6 billion, resulting in Britain paying £19.6 billion - £738 per household - too much in green taxes.

"Even on the Government's own figures, we were overtaxed by £7.9 billion - £316 per household," said TPA policy analyst Matthew Sinclair.

"Excessive green taxes hit poorer people hardest, hurt the competitiveness of British firms, cause Britain to export emissions, and fall disproportionately on residents of rural and suburban areas.

Squeezing

"Green taxes are set far higher than is necessary to pay for our carbon footprint, which loads an unfair burden onto hard pressed families and businesses.

Mr Sinclair added: "With the credit crunch squeezing household budgets, people can ill afford this extra tax grab.

"The Government is talking about raising taxes even further, but our conclusions show that green taxes should be kept as they are or cut."

By London Editor John Hipwood