Calls for tax incentives to support the business transition and reduce dependency on fossil fuels
The Institute of Directors is calling on the UK Government urgently to adjust its tax policies to take account of the extraordinary energy cost pressures businesses currently face.
This should include using tax incentives to support the business transition to a low carbon economy, with less dependency on expensive fossil fuels.
Dr. Roger Barker, director of policy at the Institute of Directors, said: “The rise in the market price of energy has had a negative impact on many businesses. For many, fuel and energy are significant cost components.
“The best way to reduce the UK’s vulnerability to adverse developments in global energy markets is to develop domestic energy sources and reduce dependency on expensive fossil fuels. Therefore, we urge the Government to facilitate this process by speeding the transition to a low carbon economy and by taking immediate measures to improve energy efficiency.
“To date, government policy has failed to address the contribution that SMEs can make to improving energy efficiency. We believe that the best way to spur change would be a clear, commercial incentive for business to invest in energy efficiency measures through a differential corporation tax for companies who have achieved net zero.
”This is something that an emergency budget could consider in the context of re-evaluating next year’s hike in corporation tax.”