In an extraordinary waste of taxpayers’ money, the Guardian reveals this morning that Boris is to pay Porsche £400,000 as he cancels the £25 CO2 Charge his predecessor had planned, which the car company had intended to challenge in the courts.
I knew today was the day when he would be announcing the abandonment of the CO2 Charge when last night I received a news release from Ken Livingstone embargoed ’til 0.01 today. Aside from the obvious environmental criticisms, this is a highlight:
The claim that £10m has been “saved” by scrapping the CO2 charge is entirely false – in reality London will lose £30-£60m expected annual revenue from the scheme.
I have heard Boris describe savings from the abandonment of the scheme before, and I just can’t understand how anyone can suggest that scrapping a revenue-raising scheme could possibly save money in the long term. I think Boris is focusing on the set-up costs and ignoring the ongoing revenue, but this is utterly ridiculous – as is paying nearly half a million pounds to one of the richest car companies in the world.
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