The fear about pollution taxes are that they could damage the competitiveness of British industry and hurt those on low incomes There are ways of addressing all these concerns. In Denmark, for example, new energy taxes have been introduced, with exemptions for heavy industrial users, so that they are not driven out of business. In the Nordic countries, domestic fuel taxes do not produce fuel poverty because homes are well enough insulated to ensure that everyone can afford to keep warm.The key would be to ensure taxes were introduced gradually. The Government has made tentative moves towards environmental taxation, with its commitment since 1993 to raise duty on petrol by 5 per cent in real terms annually.

A link has also been made between raising environmental taxes and cutting other taxes: proceeds from the landfill tax, to be introduced in September, have been earmarked to finance reduced national insurance contributions.But there is no vision behind the Government’s plans. Mr Blair has done much to impress the electorate with his sober-suited managerial approach We are still waiting for him to inspire us.. There can be scant consolation for the Prime Minister of Israel, Shimon Peres, in the advice universally conveyed to him by the dozens of governments which have sent their condolences after the latest grotesque suicide attacks At least 27 more Israelis are dead The fanatics of the Islamic Jihad or Hamas rejoice. Those dedicated to building peace, like Mr Peres, know that there is no choice but to go soldiering on. No choice because Israel and the Palestinians are locked in step towards a new understanding over territory and the mutual recognition of their identity. No choice because, whatever Israeli government emerges from elections on 29 May, the Palestinian authority and its elected President, Yasser Arafat, are now realities on the regional map. And no choice because this Israeli government, along with Mr Arafat, knows that to falter now is to invite grave consequences.
Both Mr Peres and Mr Arafat have fine political calculations to make over the weeks ahead.

The Israeli leader must act tough enough on terrorism to keep a grip on his lead in the opinion polls ahead of Israel’s election. A victory for Mr Peres is the result that would best serve the long- term interests of Israel and the aspirations of the Jewish people. The return of the Israeli right would signal only another intermission of stasis, to be inevitably broken by war or upheaval at a time perhaps less propitious for Israel’s strategic and security interests. So Mr Peres holds destiny in his hands.On the Palestinian side, Mr Arafat must make his calculations, too.