What's Happening?
UK manufacturers are increasingly investing in green technologies, with a significant majority planning to incorporate green growth commitments into their business plans over the next five years. According to a report by Make UK, over 80% of companies are prioritizing renewable energy investments. However, these efforts are hindered by higher rateable values for energy-efficient technologies, which increase business rates. 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 for green investments by UK manufacturers is crucial for achieving net-zero emissions and enhancing energy efficiency. However, the current business rate system poses a significant barrier, potentially slowing down the transition to greener technologies. Addressing this issue could unlock substantial investments, reducing operational costs and emissions. The situation also highlights the need for supportive government policies to facilitate the green transition, which is vital for long-term economic and environmental sustainability.
What's Next?
Make UK is urging the government to address the business rate issue in the upcoming budget. If successful, this could lead to increased investments in green technologies, accelerating the transition to a low-carbon economy. The outcome of these discussions will be closely watched by industry stakeholders, as it could set a precedent for future policy decisions affecting green investments.
