The tipping point for Green policy as fuel prices rocket

The papers have turned on the government over the price of motoring this morning.

The main gripe with the government is that the tax changes to older cars mean that according to the Telegraph

the changes to the Vehicle Excise Duty (VED) will affect nearly seven in 10 of the country's 26 million drivers.
Many of those who will be most heavily penalised by the rises are people on low incomes, who could have to pay up to an extra £245 a year to tax the family car.

This is really the first test of the conflict between the green argument and the economic realities for the public.

There has been much talk about how the political parties will be forced to drop green policies when voters realise that it is going to cost them more money.

Of course the real issue behind this increase in motoring costs is the rising price of oil,something that government's can do little about.

This in itself may force the public to cut back on carbon use but in reality,any cutbacks in the West will be balanced by increased use in the developing economies of India and China.

It is demand from these areas that is pushing petrol prices up.

This morning the business secretary John Hutton will make a speech in which he will argue that high oil prices must translate into action on investment on new energy sources whilst calling for action from oil producing countries to increase production and drive down prices.

The Independent adds he will say

"In the long term the only effective way to insulate ourselves and other oil consuming countries from future oil price spikes is energy efficiency and substitution.
"In the early 1970s the world faced comparable price volatility. Some economies had the vision to diversify and innovate. California blazed a trail, invested heavily in exploiting its natural resources, and is today a world leader in renew ables like solar and wind power. This should be the inspiration for responsible economies today."

As for today's fuel protests,well yes the government could take action over duty especially over commercial hauliers to protect UK firms.However there is little room for manoeuvre over domestic duty.