The new Prime Minister has signalled a retreat from Britain’s net zero rules to prioritise cost-of-living concerns.
The Prime Minister has backed down from key green tax policies (Image: Getty)
Andy Burnham has scrapped two of Sir Keir Starmer’s key green taxes in a blow to former energy secretary Ed Miliband. The Prime Minister has abandoned Labour plans to introduce eco charges on domestic ports and waste incinerator sites in favour tackling the cost-of-living crisis, reports suggest.
Sir Keir’s Government had planned to extend the UK’s Emissions Trading Scheme (ETS), under which companies have to pay for the amount of carbon they use when it exceeds a capped level. Critics warned that the move could see businesses pass on costs to customers, ultimately leaving the average Brit worse off.
Mr Burnham’s decision follows his reallocation of Mr Miliband to the foreign secretary brief, after his net zero agenda during his stint overseeing national energy policy proved divisive.
Ed Miliband was a major proponent of net zero as energy secretary (Image: Getty)
Officials from the Department for Energy Security and Net Zero (DESNZ) told The Telegraph: “We can confirm that expansion of the UK ETS to waste incineration will not take place in 2028 as originally intended.
“A new timeline will be set out in due course, along with full details on final policy design, with sufficient time for the waste sector to implement.”
The Department for Transport separately confirmed that plans to levy carbon charges on ports under the ETS scheme had also been shelved.
The Government had been warned that the move risked incentivising cruise and ferry firms to choose cheaper European ports over British ones.
It has since been quietly replaced by a carbon tax on shipping firms, mirroring levies already in place around the world.
Mr Burnham has previously signalled a willingness to retreat from net zero goals, including his stance on North Sea oil and gas and the potential watering down of targets for the take-up of electric vehicles.