What is the story about?
What's Happening?
Make UK has released a report titled 'Manufacturing a Sustainable Future – Capitalising on Green Technologies,' highlighting the commitment of UK manufacturers to invest in green technologies. Despite calls to reduce net zero ambitions, over 80% of companies plan to prioritize renewable energy in their business plans over the next five years. However, investments in energy-efficient technologies face higher rateable values, increasing business rates and discouraging further investment. Make UK is urging the government to exclude these investments from business rate calculations, as 44% of companies cite this as a significant barrier.
Why It's Important?
The push for green investments is crucial for the UK's industrial sector to meet net zero targets and enhance energy security. Removing business rate penalties could accelerate the adoption of renewable energy and other green technologies, making operations more efficient and reducing emissions. This shift is vital for maintaining competitiveness, especially as energy costs in the UK are significantly higher than in the US, France, and Germany. The government's response could influence the pace of industrial decarbonization and the country's ability to meet its environmental goals.
What's Next?
Make UK recommends extending the Green Investment relief for business rates from 12 months to three years and aligning it with the 2050 net zero target. They also suggest updating apprenticeship courses to include new technologies and expanding R&D tax relief to cover industrial automation and decarbonization equipment. These measures aim to foster a skilled workforce and encourage further green investments, potentially leading to a significant reduction in industrial emissions and operational costs.
AI Generated Content
Do you find this article useful?
