Website of the UK government

Single-use carrier bags

The government has already called on retailers to take voluntary action to encourage the shift away from single-use carrier bags. But if there is not sufficient progress on a voluntary basis by the end of the year, the government will take powers early next year to impose a charge on these bags.

The government will consult on the operation of the charge and how to ensure that any money raised goes to environmental charities.

Zero carbon buildings

All new non-domestic buildings to be zero carbon from 2019. The government will consult this year on the timeline for this ambition and its feasibility, and review progress in 2013. The policy is estimated to save approximately 75 million tonnes of carbon dioxide in the next thirty years.

This is in addition to the ambition for all new homes to be zero carbon from 2016.

Aviation tax

Last October’s Pre-Budget Report 2007 announced that air passenger duty would be replaced with a duty payable per plane rather than per passenger. This will take place from 1 November 2009. The design of the new per plane duty is currently under public consultation.

The Chancellor said that because emissions from aircraft are forecast to continue to grow, "I am also announcing that revenue from plane duty will be increased by 10 per cent in the second year of operation."

Fuel duty

The fuel duty increase of 2 pence per litre planned for April 2008 will now take place on 1 October 2008.

The government's policy is that fuel duty rates should rise each year at least in line with inflation as the UK seeks to reduce polluting emissions and fund public services. This Budget confirms that main road fuel duty rates will rise by 1.84 pence per litre on 1 April 2009, and rates will then also increase by 0.5 pence per litre above indexation on 1 April 2010.

Vehicle excise duty (car tax)

From 2009, Vehicle Excise Duty will be restructured so that people gain financially by choosing the greenest cars. From 2010, there will be a new higher first year rate to influence purchasing choices.

• Budget 2008 - motoring taxes

Renewable energy

In summer 2008, the government will launch a full consultation on what more we should do to increase renewable energy use, including how to address barriers to renewables such as planning and grid access.

Carbon emissions

The UK is currently working towards a long-term goal of reducing CO2 emissions by at least 60 per cent by 2050. The evidence now suggests that as part of an international agreement the UK may have to reduce emissions by 80 per cent. The government has asked the climate change committee for its advice on this point.

The Climate Change Bill will commit the government to fixed and binding 5-year carbon budgets