Homes that leak energy by not insulating roofs must pay more tax, says Huhne

Published 16th Jun 2011

Families who reject green measures such as insulating their homes should be hit with higher council-tax bills, Energy Secretary Chris Huhne has urged.

The Liberal Democrat minister said he expected ‘enlightened’ councils to favour homeowners who made their properties more energy efficient.

Mr Huhne was immediately slapped down by Eric Pickles, the Local Government Secretary, whose spokesman insisted this would not happen.

‘People are fed up with Labour’s council-tax rises, and there is no appetite among the public for more,’ he said.

Local authorities have been encouraged to offer incentives to residents who insulate their homes by taking out special ‘Green Deal’ loans.

But this is the first time a minister has suggested the rewards should be funded by higher tax bills for others.

Mr Huhne told MPs on the Environmental Audit Committee that local government could play a ‘very significant’ role in reducing carbon emissions by subsidising greener households through higher bills for residents who don’t insulate their lofts or walls, or install double glazing.

His extraordinary intervention comes as householders face inflation-busting power bills this winter. Scottish Power said last week it would raise gas bills by 20 per cent, while Centrica, which owns British Gas, warned that further increases were inevitable.

Although wholesale gas prices are high, much of the burden on residents is a result of green stealth taxes now built into bills.

The row came as John Cridland, director-general of the CBI, warned the latest carbon levies were ‘counter-productive’ and would make Britain’s steel and chemicals industries less competitive on the world stage.

He called for the Government to axe some climate-change taxes – and exempt energy-intensive businesses from others.

Source: ' ThisIsMoney '

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