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12 Mar 2008

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Retailers accuse Chancellor of “green smokescreen” Budget

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Chancellor Alistair Darling is using claims of tackling social and environmental ills as an excuse to tax businesses and consumers more heavily, claims the British Retail Consortium (BRC).

The trade association described Darling's emphasis on carrier bags as a cause of climate change as “outrageous” after he threatened to bring in charges from next year if retailers fail to act.

The BRC said Darling had failed to offer significant incentives that could make a real difference to the environment and to the economy.

Stephen Robertson, director general of the BRC, said: “We'll need to look beyond the headlines to the inevitable unannounced detail before we can fully assess this Budget, but it's clear the Chancellor has huge holes in his accounts and is trying to hide an old-fashioned tax grab behind a bags and alcohol smokescreen.

“Retailers are driving efforts to achieve social and environmental objectives but the Chancellor's green tax gimmickry is simply an excuse to take yet more money from hard-pressed businesses and consumers.”

On compulsory carrier bag charges, Robertson said: “It's outrageous to suggest carrier bags are a major cause of climate change.

“Retailers have already committed to reduce the environmental impact of plastic bags by a quarter by the end of this year. Huge progress has been made without any need for legislation.

“Customers took a billion fewer bags in the last 12 months and retailers are over half way to achieving the target on cutting the use of new plastic. This shows bans or taxes are not the only way.

“By setting a date for legislation the Government appears to have jumped to a verdict already, abandoning their agreement. Retailers take their environmental responsibilities very seriously, but want policies that are based on clear evidence, rather than knee-jerk reactions to highly emotive campaigns.”

On increased alcohol taxes, Robertson said: “We share the Government's concerns on responsible drinking but are not convinced that raising the price of alcohol through taxation is the correct solution.

“The key issue is changing our culture and encouraging awareness of sensible drinking, a process retailers are committed to working with Government on as part of its alcohol strategy.

“The problem with taxation on alcohol is that it's a blunt instrument that raises the price to millions of consumers who drink responsibly.”

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