What is the story about?
What's Happening?
UK manufacturers are increasingly investing in green technologies, with a significant focus on renewable energy, greener materials, and digitalization. According to a report by Make UK, over 80% of companies plan to include green growth in their business strategies over the next five years. Despite this commitment, manufacturers face challenges such as increased business rates due to higher rateable values of energy-efficient technologies. Make UK is advocating for the removal of these investments from business rate calculations to encourage further green investments.
Why It's Important?
The push towards green technologies is crucial for the UK's industrial sector to meet its net zero targets. However, the current business rate system discourages investments in energy-efficient technologies, potentially hindering progress. If the government addresses these barriers, it could lead to a surge in green investments, reducing emissions and operational costs for manufacturers. This shift is vital for maintaining competitiveness, especially as energy costs in the UK remain significantly higher than in other countries like the USA, France, and Germany.
What's Next?
Make UK is urging the government to adjust business rate policies in the upcoming budget to remove disincentives for green investments. Additionally, the introduction of the British Industrial Competitiveness Scheme in 2027 aims to support long-term energy cost reductions. The outcome of these policy changes will significantly impact the pace at which UK manufacturers can transition to greener operations.
Beyond the Headlines
The commitment to green technologies reflects a broader industrial trend towards sustainability, driven by both regulatory pressures and market demands. This transition not only addresses environmental concerns but also positions UK manufacturers as leaders in sustainable practices, potentially influencing global supply chains.
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