Rachel Reeves’ top aide hints she could implement higher green taxes in Budget

FEARS of higher green taxes have been fuelled by one of the Chancellor’s top aides saying global carbon levies are “way” too low.

Prof John Van Reenen, chairman of Rachel Reeves’s council of economic advisers, appeared to suggest a new carbon tax is required.

PA

Fears of higher green taxes have been fuelled by one of Rachel Reeves’ top aides saying global carbon levies are ‘way’ too low[/caption]

X/@johnvanreenen

Carbon taxes are levied on businesses that generate emissions while producing goods and services.

Britain does not have them yet, but many countries do, including the EU’s 27 states.

During a recent panel discussion, Mr Van Reenen said: “Around the world, carbon taxes are way lower than anybody thinks necessary to get the kind of transition we want.”

Labour sources played down speculation that Ms Reeves would implement a carbon tax in her October 30 Budget — but the Treasury did not deny it.

Tory MP Bradley Thomas said: “Once again, one of Rachel Reeves’s advisers is revealed to be a tax-raising fanatic.

“Last time we warned her advisers were calling to cut Winter Fuel Payments, Labour denied it, and a month later they did exactly that.

“These measures would further smother business with more regulation and higher taxes – stifling investment and killing growth.

“Ahead of Labour’s first Budget, the Chancellor must come forward with a real plan for growth or business confidence will continue to plummet on her watch.”

A Treasury spokesman said: “The Chancellor makes decisions on tax policy at fiscal events. We do not comment on speculation around tax.”