Typical accountants
Whilst I have no reason to doubt the numbers quoted surely the comparison is too simplistic. Government spending (both nationally & locally) on environmental initiatives goes way (and I mean way) beyond a few millions on tax breaks.
I’m no promoter of this government but would refer you to the billions quoted in the 2009 Budget report under “Building a Low Carbon Recovery” and more specifically support for organisations like The Carbon Trust, Envirowise & WRAP. I don’t have my calculator handy but I’m pretty sure if you added this lot up they'd dwarf the “stick” taxes.
The other aspect that may have been overlooked in the comparison is that the green tax breaks rely on businesses taking them up, ie do the figures quoted relate to tax breaks offered or tax breaks taken? For example, when the first 100% capital allowance was released for green cars, the government may have budgeted for an £XM handout but because most company car users wouldn’t then have been seen dead in anything doing less than 300 gm/k, they ended up handing out £25 ish.
Carrot initiatives go much further than a few clumsy £s spent exempting cycle helmets from VAT. As customers, suppliers and shareholders begin to catch on to the whole sustainable living thing businesses are being lead (dragged) into seeing green issues as an opportunity, a way to improve the bottom line, and I would suggest that spending money via back doors to promote this message is a far more efficient way of going about this than giving prizes.
CA's on cars isn't a green incentive
It's another lesson is how to snatch defeat from the jaws of victory.
Sub 110 g'km is still the preserve of the very small car so will not force decision making in that direction.
If they had given 100% allowances to sub 120 g'km cars, they are lots of practical options for sales fleets and i believe you woudl have seen many companies changing there purchasing decisions. Yes slightly more CO2 emission but far better than simply provided losts of people with 150g/Km + cars.
Unless of course you don't actually want to give away much tax relief with this option but want to be able to say you are bringing in green legislation ;)