There are several other "green" taxes, all of which are supposedly intended to reduce consumption of fossil fuels. Excluding VAT, these account for 7.3% of all taxation in Britain. When Peak Oil really hits home revenue from green taxes is bound to fall. So DaveMart, you are right to say that either spending will be slashed or taxes will be hiked, and that the loss of revenue will be worse in high-tax countries.

The rising price of oil will act as a green tax in itself; so presumably the government should reduce taxes as the price rises. A gradual reduction in the tax will allow the government to wean itself off green taxes over time. Fuel taxes should be set like all other taxes - to pluck the maximum of feathers with the minimum of hissing.

_{(I'm deliberately ignoring the more general issue of decreased revenues and increased expenditure which was discussed at length in the recent article on Local Government.)}