Boris Johnson’s green plan has been deemed "unfit for purpose” as families are set to face tax hikes to fill a £37 billion black hole.
The Treasury warned that tax rises would be on the cards to cover the cost of Britain meeting its climate targets - after ditching existing levies on fossil fuels.
In a 135-page report, treasury officials said: "If there is to be additional public spending the government may need to consider changes to existing taxes and new sources of revenue throughout the transition in order to deliver net zero sustainably."
The document added “significant amounts” of tax money will be lost as people pay less fuel duty and road tax - which together were worth £37bn or 1.7% of GDP in 2019/20.
Those receipts are expected to decline “towards zero” over about 20 years, leaving tax receipts 1.5% of GDP lower.
This would mean Brits would face more expensive mortgages and would be persuaded to ditch their petrol cars in favour of electric vehicles currently costing an average of £44,000 by 2030.
Officials said Brits were able to access grants worth £5,000 in order to replace their gas boilers with more eco-friendly heat pumps.
But it will not cover the full cost of installing a heat pump - with homeowners having to dig out thousands of pounds on top.
And not all homeowners in the country will be able to access the grant worth £450million of taxpayer cash in total, which would be enough for around 90,000 heat pump grants.
Families up and down the country face an energy and cost of living crisis, with many needing their homes upgraded with insulation and double glazing to reduce costs.
Clive Lewis MP for Norwich South branded the plan a “burn now, pay later document and strategy that isn’t fit for purpose”.
He said: “There’s two problems with the Government’s net zero strategy: net and zero.
"Zero because it isn’t zero, we know there are sectors beyond 2050 like aviation, that will be pumping out millions of tonnes into the atmosphere, and net because we know they are relying on negative emissions technologies which, frankly, are based on science fiction, of which there is no prospect of mass rollout, and we are banking on this to rescue us from the climate crisis."
The Business and Energy Select Committee Chair Darren Jones added: "People across the country will want to know whether the promises made today will actually be delivered or once again result in failure.”
The PM's net zero strategy also included:
It comes ahead of the COP26 Glasgow Summit next month, with experts fearing the PM may not be able to get the world's richest countries to sign up to climate targets.
Without urgent action on climate change the world faces the "jaws of death", according to the Environment Agency.
Hotter summers and less predictable rainfall as a result of climate change will create an increased risk of droughts and serious water shortages in the UK, the Environment Agency (EA) has said.
Sir James Bevan, chief executive of the EA, said major investments are needed to avoid hotter summers and unpredictable rainfall.
Shadow Business Secretary Ed Miliband said: “This is a plan torpedoed by the Treasury. Once again, it has failed to recognise that the prudent, responsible choice is to sufficiently invest in a green transition.
“Homeowners are left to face the costs of insulation on their own, industries like steel and hydrogen are left hobbled in the global race without the support they need, and the government cannot even confirm they will meet their climate target for 2035."
Shaun Spiers, executive director at Green Alliance, said: “We need a more ambitious response from the chancellor at the spending review to turn these promises into jobs, growth and benefits to consumers.
"And if the government truly wants to level up the country, we’ll need much more investment once the dust has settled on the COP26 Glasgow climate summit.”
The Government insists the transition will create 440,000 jobs and draw up to 90 billion of private investment by 2030.
Image:AFP via Getty Images)
But there was no mention of eating less, flying less and recycling more.
There has already been a consultation on improving home energy performance through lenders which closed earlier this year.
The proposals would require mortgage lenders to disclose energy performance across their property portfolio, with voluntary targets to improve the energy performance of their portfolios to an average of EPC band C by 2030.
But poorer families may struggle to borrow more, or afford the cost of changes to properties that may be older.
Energy minister Greg Hands told the House of Commons the strategy “is not just an environmental transition, it represents an important economic change too”.
Boris Johnson said: “The UK’s path to ending our contribution to climate change will be paved with well-paid jobs, billions in investment and thriving green industries – powering our green industrial revolution across the country.
"By moving first and taking bold action, we will build a defining competitive edge in electric vehicles, offshore wind, carbon capture technology and more, whilst supporting people and businesses along the way.”Read More Read More