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Ahead of the Autumn Budget and Spending Review, due to be delivered on Wednesday 27 October, the Institute and Faculty of Actuaries (IFoA) is urging the UK Chancellor Rishi Sunak to consider the long-term spending implications of the Government’s climate proposals on future generations. |
IFoA President Louise Pryor said: “The publication of the Government’s long-awaited Net Zero strategy was an important step on the UK’s path to its 2050 target. The strategy appears ambitious, but stops short of bold decisions on fossil fuel use. Irrespective of the gaps in policy, the way in which the proposals are implemented must have climate justice at their heart. Somebody born in 1950 in the UK has a lifetime carbon allowance of 794 tonnes of C02 if global warming is kept to within 1.5 degrees. For someone born in 2000, the lifetime allowance is considerably lower at 256 tonnes.
“HM Treasury’s own analysis of the Strategy rightly considers the implications of the just transition for both current and future taxpayers. We therefore urge the Chancellor to ensure that the implementation and funding of the measures is carried out fairly so that younger generations and low income households can benefit from the economic opportunities presented by the transition to net zero, without bearing the cost disproportionately. Significant upfront costs will be required to decarbonise our economy, but the cost of inaction will be far greater." |
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