Spring Statement 2022: Green Technology & Sustainability
The Chancellor announced zero-rating for energy efficient construction materials and two new business rates reliefs will be brought forward by a year to come into effect in April 2022. There will be no business rates due on a range of green technology used to decarbonise buildings, including solar panels and batteries, whilst eligible heat networks will also receive 100% relief. Together these will save businesses more than £200 million over the next five years.
Both will contribute to improved sustainability but as the Shadow Chancellor pointed out this was a missed opportunity to do more to promote green technologies and supported their key levelling up pledge.
The importance of the sustainability agenda has been further highlighted by the tensions with Russia and the impact on energy prices. The failure of anything more significant to materialise is due to the delays in the publication of the of the new energy security strategy but the rising prices combined with the tax incentives and additional incentives make sustainability more attractive.
However, for a step change in the sector, spending and more certainty is required. In line with the theme of the Autumn Budget, the focus was on cutting rates as opposed to spending, and we hope to see more commitment in the future on wind and solar and incentives for energy intensive business to adapt.
Read the latest tax commentary – visit our dedicated Spring Statement 2022 Hub.