Despite the new Government's pledge to be the "greenest government ever", their first Budget failed to include any specific measures for the renewable energy industry. Instead, the Government confirmed it would assess the energy tax framework to provide incentives for investment and repeated its commitment to moving the UK towards a secure low-carbon economy by 2020. There were a few green energy measures contained in the Budget Report and these are summarised below.
- Climate Change Levy: The Government will publish proposals to reform the Climate Change Levy in order to provide more certainty and support to the carbon price. These proposals will be published in the autumn, with legislation expected to follow in 2011.
- Green Investment Bank: As previously announced in the March Budget, the Government intends to take forward plans to create a Green Investment Bank. The Government is said to be considering a wide range of options for the scope and structure of the proposed bank to ensure the most effective means of providing private investment in clean energy and green technology.
- Green Deal: The Energy Security and Green Economy Bill will establish a Green Deal to help individuals invest in energy efficient improvements to their home, which will be paid for by the savings in their energy bills,
- Green Financial Products: The Government confirmed it will continue to support the creation of green financial products to provide the opportunity for individuals to invest in the green economy.
Many of these proposals are lacking detail at the present time and will of course be subject to consultation in due course.
Disclaimer
The material contained in this article is of the nature of general comment only and does not give advice on any particular matter. Recipients should not act on the basis of the information in this e-update without taking appropriate professional advice upon their own particular circumstances.