UK's net zero goal under pressure from spending watchdog

Calls for green taxes to be eased following Germany's announcement

The UK's spending watchdog has raised concerns over the government's net zero plans. PA

The UK's net zero goal is in jeopardy after the nation's spending watchdog raised concerns about the financial costs.

Leading political figures urged the UK to copy Germany's move in easing green taxes.

Last year Germany cut its environmental levy by more than 40 per cent as gas prices soared.

The National Audit Office has raised concerns that the UK's scheme could waste taxpayers' money.

The UK has pledged to reach its target of net zero carbon emissions by 2050.

Gareth Davies, the NAO's Auditor General, said the target could cause spiralling costs on projects which may fail to deliver.

He said the government had to ensure public money was not wasted at a time when people were facing rising energy costs.

“We will be keeping a close eye on how well the Government is spending to achieve both short-term and long-term value for money,” he wrote in The Daily Telegraph newspaper.

“With energy and fuel costs already high, the government will need to be clear on how the cost of replacing gas boilers or switching to electric cars will be managed.”

This year, politicians called on the government to reassess its net zero plans amid the rise in living costs.

The public accounts committee said in March that ministers have “no clear plan” for how to pay for the transition to electric heating and transport and raised concerns that they may be overestimating consumer willingness to switch to heat pumps and electric cars.

Last month Boris Johnson was urged by economic adviser Gerard Lyons to follow Germany's initiative in suspending green taxes.

“You need to offset the impact of high fuel prices,” the Telegraph reported him saying.

“This could include cutting VAT on domestic energy, cutting fuel duties further and — without undermining your green credentials — temporarily suspending the environmental levy, as they have done recently in Germany.”

Last month the UK imposed a 25 per cent windfall tax on energy companies.

The charge was part of a £15 billion ($18.87bn) giveaway by the Treasury to help poorer people and families through the huge increase in energy prices.