Chancellor reportedly considering green tax on imported fuel

Summarised from 2 outlets · Updated 25 Oct, 16:19 · Archive

John Healey is reportedly considering a tax on imported fuel ahead of Wednesday's Budget.

Chancellor John Healey is reportedly considering introducing a carbon border adjustment mechanism (CBAM) on imported fuel in Wednesday's Budget. Under the proposed policy, imported petrol and diesel would incur the same environmental taxes currently paid by UK fuel manufacturers, according to reports in The Daily Telegraph and The Sunday Telegraph.

The policy is intended to 'level the playing field' between British refineries and foreign competitors. Energy Secretary Miatta Fahnbulleh is thought to be supportive of the measure, which is set to come into force on 1 January 2027. The Paymaster General James Murray told Parliament on Friday that the government was 'considering the feasibility and impacts' of using CBAM on refined products, marking the strongest signal yet that the measure could be included in the Budget.

Critics have warned the tax will increase petrol prices for consumers already dealing with record-high pump costs. The TaxPayers' Alliance called the charges 'a shameless tax raid disguised as environmental policy', warning that levying carbon charges on imported fuel would 'inflate pump prices and drive up supply chain costs for ordinary families'. Elizabeth de Jong, chief executive of Fuels Industry UK, said the proposed tax would bring investment to the UK.

How it is being reported

• Healey draws up plans for 'green tax' on imported fuel amid fears it will bump up prices even moreThe Chancellor will use the 'green tax' to address environmental levies which hit British refineries but not imported fuel.Daily Mail · 25 Oct, 16:05
• Healey ‘proposes green fuel tax’ – what it means for drivers and petrol pricesThe Chancellor is reportedly considering a charge on imported fuel at the BudgetThe i Paper · 25 Oct, 13:06

In this story: John Healey · Miatta Fahnbulleh · James Murray · Energy Secretary · TaxPayers' Alliance · Fuels Industry UK · UK

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem