From green to Brown - Government backs away from pro-environment taxes

In his pre-Budget report, Chancellor Gordon Brown has modified his stance on green issues, accepting that the cost burden falling on industry was too high.

The automatic increase in petrol taxes, established under the previous government, is to be scrapped in favour of an annual review. In addition, the proposed Climate Change Levy has been cut almost in half, and provisions for rebates to energy-intensive industries have been increased to 80%.

As ever, the Chancellor is walking a fine line, attempting to balance both government policy and income with the demands of business and environmental groups.

In an even more blatant balancing act, John Prescott - who carries the brief for both transport and the environment - welcomed the report and praised Gordon Brown's success in reconciling conflicting priorities.

Elliott Chase