LONDON, July 8 (Xinhua) -- Britain has said it will go slow on biofuels following a new scientific report that suggests they could eventually harm the environment and contribute to food price increases.

British Transport Secretary Ruth Kelly and Environment Secretary Hilary Benn have announced a new cautious approach to biofuels based on recommendations from the newly released Gallagher review, the Guardian newspaper reported Tuesday.

The review, which took into account the wider social and environmental impact of biofuels, advised the government to "amend but not abandon its biofuel policy."

Biofuels can play a role in tackling climate change and there is a future for a sustainable biofuels industry in Britain, said the review commissioned by Kelly in February.

According to the review, biofuels have the potential to deliver annual global greenhouse gas savings of approximately 338-371 million tons of carbon dioxide by 2020.

However, there is a risk that the uncontrolled expansion and use of biofuels could drive unsustainable land use change, which in turn might lead to net increases in greenhouse gas emissions and potentially contribute to rising food prices.

"It is clearer than ever that we need to break our dependence on oil. To tackle climate change we will need to develop new, cleaner fuels -- but that doesn't mean pushing forward indiscriminately on biofuels that may do more harm than good," said Benn.

Under the Renewable Transport Fuel Obligation, which became effective this April, British road transport fuel suppliers have to ensure that 2.5 percent of their total fuel sales is made up of biofuels.

The level of the obligation is due to rise to 3.75 percent in April 2009 and to 5 percent the following April.

The European Commission's draft Renewable Energy Directive has proposed a mandatory 10 percent renewable transport fuel target by 2020.