What's Happening?
A recent survey by Make UK highlights a strong commitment among British manufacturers to invest in green technologies over the next five years. The report, titled 'Manufacturing a Sustainable Future,' reveals that over 80% of manufacturers plan to incorporate green growth into their business strategies, with renewable energy being a top priority. Despite this commitment, more than 40% of companies cite policy uncertainty as a barrier to investment. The survey also notes that investments in energy-efficient technologies are often penalized by increased business rates, which discourages further investment. Make UK is advocating for policy changes to remove these disincentives and to expand R&D tax relief to include decarbonization investments.
Why It's Important?
The findings of the Make UK survey are significant as they demonstrate the manufacturing sector's readiness to embrace green technologies, which is crucial for achieving net-zero emissions targets. The commitment to renewable energy and other green technologies can lead to reduced operational costs and lower emissions, contributing to environmental sustainability. However, the current policy framework, which penalizes green investments through higher business rates, poses a challenge. Addressing these policy barriers is essential to unlocking further investments and ensuring that the UK remains competitive in the global green technology market.
What's Next?
Make UK is urging the government to address the policy barriers identified in the survey. This includes removing green investments from business rate calculations and expanding R&D tax relief. The organization also recommends extending the duration of Green Investment relief and updating apprenticeship programs to include new technologies. These measures could facilitate a wave of green investments, enhancing the efficiency and sustainability of manufacturing operations. The government's response to these recommendations will be crucial in determining the pace and scale of green technology adoption in the UK manufacturing sector.
