PAC criticises HMRC and HMT on lack of environmental tax plans

Released 28 April 2021

The Public Accounts Committee (PAC) has warned that HM Treasury (HMT) and HMRC have a ‘very limited view of the role of tax’, with a ‘limited understanding of the environmental impact’ of taxes, and were unable to explain to the Committee ‘how the tax system is used in achieving the Government’s environmental goals’.

In its recent report the PAC also stated that despite a narrow focus on the revenue taxes raise, the two departments also ’have yet to plan for the impact of the Government’s environmental ambitions on tax revenues’ and that the lack of understanding, leadership and coordination at the Treasury and HMRC in face of the global ‘climate storm breaking all around us’ is disappointing.

Further information, including a link to the PAC report, can be found at

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