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Mar 13, 2018

Spring Statement raises opportunity to use tax system to spur sustainable investment

  • Chancellor makes Spring Statement in the House of Commons
  • Renewable energy and clean tech sector reacts to Statement

The Chancellor’s Spring Statement has opened the discussion regarding how the tax system can be used to spur growth in the UK’s recycling, renewable energy, and clean tech sectors, according to the REA.

In the Spring Statement the Chancellor announced:

  • A Call for Evidence on plastics, which will investigate how the tax system can support a reduction in the utilisation of single use plastics and encourage the use of reusable materials
  • An ambition to invest £20m in research and development in plastics to develop new greener products and processes
  • Details relating to how the Housing Infrastructure Fund will support the deployment of new homes
  • A consultation on how Vehicle Excise Duty can support the cleanest vans

James Court, Head of Policy and External Affairs at the Renewable Energy Association said:

“We welcome commitments by the chancellor to use the tax system to spur green innovation in the field of recycling, and call on him to go further and kick start the renewables economy by introducing enhanced capital allowances for technologies of the future such as solar and energy storage.

“The Chancellor’s commitment to recycling is welcomed, but needs to go beyond single use plastics. The tax system should be used to encourage more sustainable behaviours and establish a true circular economy, one that includes waste reduction, recycling, and energy recovery. An ambition to bring England’s food waste collections to at least the levels seen in Scotland and Wales should be a priority alongside tackling single-use plastics.

“Delivering new homes is a political priority shared by all, but we need to ensure these new homes are good quality and fit for the future. We call on the Chancellor to ensure that the homes being supported by the Housing Infrastructure Fund have high efficiency ratings, are using renewable energy to power and heat their homes, and have sufficient electrical supplies to support the coming mass roll-out of electric vehicles.

“The consultation on Vehicle Excise Duty for the cleanest vans should be extended to see how the tax system can better incentivise electric car adoption, which in turn improves the case for domestic EV manufacturing. Specifically, Benefit in Kind rates for electric cars should be revised.”

—ENDS—

For more information or to request an interview, please contact:

Daniel Brown
External Affairs Officer
+44 (0)20 7981 0857
[email protected]

Notes to editors

About the Renewable Energy Association (REA)

The Renewable Energy Association represents renewable energy producers and promotes the use of all forms of renewable energy in the UK across power, heat, transport and recycling. It is the largest renewable energy and clean technology (including energy storage and electric vehicles) trade association in the UK, with around 550 members, ranging from major multinationals to sole traders.

For more information, visit: www.r-e-a.net