The Liberal Democrat minister backed a call by his party’s activists which would see 10 per cent of all Government revenue come from green taxes within five years.
Revenue from green taxes is currently forecast to fall from 6.9 per cent of the total to 6.5 per cent over the next five years. Raising the proportion to 10 per cent would require an extra £22billion – an unprecedented shift in the burden of taxation.
The LibDems claimed that raising more in green taxes would allow them to reduce other taxes. But critics last night dismissed it as a cynical move to squeeze more tax out of motorists.'
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