Green groups warn of backlash against Budget

Green groups were already saying last night they were disappointed by the leaks of Gordon Brown's final Budget today for failing to rise to the challenge of climate change.

The Green Party called on the Chancellor to "put his money where his mouth is" in curbing global warming. And Friends of the Earth said the mooted increase in vehicle excise duty to £400 a year on 4x4s from next April was not enough and should be £2,000.

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He was also facing a backlash from green campaigners for rejecting the Tory proposals for a hike in taxes on aviation.

Mr Brown will tell the Commons today that he will lead international action by seeking to put aviation into the European carbon trading scheme.

But campaigners said he should take more action to match his rhetoric. The Renewable Energy Association (REA) said it was facing a "crisis in funding" in spite of support for its aims by Mr Brown. Its monthly allocation of £500,000 in grants for solar panels and insulation in the home ran out within 75 minutes on 1 March.

Seb Berry, head of micro-renewables at the REA, said the leaked plan to allow homeowners an income tax break for any income they earn from wind turbines on their homes was "not as rosy at it looks". Few people will qualify for the exemption but the association is seeking £15m over two years for thousands of people across the country who are seeking small grants from the low-carbon homes programme.

"We will be looking very closely to see if that decision is revisited. If it isn't it will be a very sad commentary on the way in which the Chancellor is acting on his rhetoric," said Mr Berry.

Tony Juniper, director of Friends of the Earth, said: "Gordon Brown must put climate change at the centre of his Budget and demonstrate real political leadership."