The government has today (28 Sept 2015) launched a review of business energy taxes, following an announcement at the Summer Budget that it will look at how to simplify and improve them.
Over the summer, the government sought initial views from a range of businesses, academics and other bodies. A consultation published today now sets out proposals to reform business energy efficiency tax and policy, and seeks views from a range of interested parties.
The review has three key aims:
boosting business productivity
decarbonising the economy
Improving the productivity of UK businesses is a key objective for this government. This review is part of the government’s productivity plan, “Fixing the Foundations: Creating a more prosperous nation”, which set out the government’s objectives to encourage long term investment to boost the productivity of the UK economy.
As part of this, the government is committed to supporting business growth, and this review will look at how to help businesses by reducing admin costs and improving incentives to invest in energy efficiency.
Finally, moving towards a low carbon economy in a cost-effective way is a key part of this government’s long term plan, and this review will look at how investment in energy efficiency can support this.
Exchequer Secretary to the Treasury Damian Hinds said:
This government wants to create a sustainable tax system for businesses that is fair and simple and supports growth. We recognise business concerns around the complexity of business energy efficiency policy and we want to create a simpler and more stable environment.
This will in turn help increase the productivity of our businesses and boost our economy, while at the same time delivering on our commitment to save carbon.
Secretary of State for Energy and Climate Change Amber Rudd said:
Moving to a low-carbon economy is vital for our long-term economic and environmental prosperity, and we are determined to do so in a way that backs business and helps them to innovate, grow and create jobs. We want to reduce the burden on business and make it easier for them to grasp the opportunities that clean growth represents.
The consultation is open until 9 November and the government welcomes views from businesses, organisations and the public.