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Miliband 'draws up green taxes' Miliband 'draws up green taxes'
(about 4 hours later)
The environment secretary is proposing green taxes designed to change people's behaviour to offset global warming, according to a Sunday newspaper.The environment secretary is proposing green taxes designed to change people's behaviour to offset global warming, according to a Sunday newspaper.
The Mail on Sunday quotes a leaked letter from David Miliband to Chancellor Gordon Brown.The Mail on Sunday quotes a leaked letter from David Miliband to Chancellor Gordon Brown.
Proposals include "pay as you drive" and cheap flight taxes and levies on energy-wasting appliances, it says.Proposals include "pay as you drive" and cheap flight taxes and levies on energy-wasting appliances, it says.
Meanwhile Conservative leader David Cameron has told the BBC he would be prepared to tax air travel.Meanwhile Conservative leader David Cameron has told the BBC he would be prepared to tax air travel.
This comes ahead of a report expected to warn climate change may cut global annual economic output by up to 20%.This comes ahead of a report expected to warn climate change may cut global annual economic output by up to 20%.
The influential report by economist Nicholas Stern is due to be published on Monday.The influential report by economist Nicholas Stern is due to be published on Monday.
Ahead of this, the Mail on Sunday says the leaked letter from 18 October calls for urgent action in next month's public spending review and next year's Budget.Ahead of this, the Mail on Sunday says the leaked letter from 18 October calls for urgent action in next month's public spending review and next year's Budget.
In the letter to Mr Brown, Mr Miliband calls for measures to combat "car use and ownership", and a "substantial increase" in road tax, the paper claims. He also calls for a new pay-per-mile pollution tax.In the letter to Mr Brown, Mr Miliband calls for measures to combat "car use and ownership", and a "substantial increase" in road tax, the paper claims. He also calls for a new pay-per-mile pollution tax.
The paper said leaked proposals suggest families with big cars could end up paying more than £1,000 a year in additional tax.The paper said leaked proposals suggest families with big cars could end up paying more than £1,000 a year in additional tax.
'Tax flights''Tax flights'
Changing people's behaviour is only achieved by "market forces and price signals," Mr Miliband wrote.Changing people's behaviour is only achieved by "market forces and price signals," Mr Miliband wrote.
He added: "As our understandings of climate change increases, it is clear more needs to be done."He added: "As our understandings of climate change increases, it is clear more needs to be done."
The minister also suggests making flights subject to VAT, for either domestic flights or "better still all EU flights," the Mail says.The minister also suggests making flights subject to VAT, for either domestic flights or "better still all EU flights," the Mail says.
Higher emission vehicles could face higher road taxHigher emission vehicles could face higher road tax
Meanwhile Mr Cameron spoke about green levies in a pre-recorded interview for the BBC One's The Politics Show.Meanwhile Mr Cameron spoke about green levies in a pre-recorded interview for the BBC One's The Politics Show.
He told the programme: "Some green taxes do hit the poorest in our society, so we have to think about that very carefully before we make taxation decisions.He told the programme: "Some green taxes do hit the poorest in our society, so we have to think about that very carefully before we make taxation decisions.
"If it means putting a tax on air travel, then yes, that's something we'd be prepared to do.""If it means putting a tax on air travel, then yes, that's something we'd be prepared to do."
But he said budgetary decisions should be made closer to budgetary times.But he said budgetary decisions should be made closer to budgetary times.
Mr Cameron also gave his backing to Liberal Democrat-controlled Richmond council's plans to charge the drivers of the most polluting vehicles higher parking fees.Mr Cameron also gave his backing to Liberal Democrat-controlled Richmond council's plans to charge the drivers of the most polluting vehicles higher parking fees.
Economic impactEconomic impact
Elsewhere, ex-cabinet minister Stephen Byers has said there may be need to introduce green taxes, according to the Observer newspaper.Elsewhere, ex-cabinet minister Stephen Byers has said there may be need to introduce green taxes, according to the Observer newspaper.
The paper said he told an audience of businessmen in China this weekend that: "For the Labour party there must be no no-go areas for policy debate". The paper said he told an audience of businessmen in China this weekend that: "For the Labour party there must be no no-go areas for policy debate.
"We should consider how we can change the structure of our tax system in a way which benefits the lowest-paid and penalises environmentally damaging activity," it quotes him as saying. "We should consider how we can change the structure of our tax system in a way which benefits the lowest-paid and penalises environmentally damaging activity," it quotes him as saying."
The Stern Review, due out on Monday, will examine economic, not environmental, arguments of global warming.The Stern Review, due out on Monday, will examine economic, not environmental, arguments of global warming.
Sir Nicholas's report is expected to claim that at the very best the cost of tackling global warming would be 1% of annual economic output.Sir Nicholas's report is expected to claim that at the very best the cost of tackling global warming would be 1% of annual economic output.
The report looked at the impact of global warming on economic output, or gross domestic product (GDP), until 2100.The report looked at the impact of global warming on economic output, or gross domestic product (GDP), until 2100.