What's Happening?
A report by Make UK reveals that UK manufacturers are increasingly committed to green growth, with over 80% planning to invest in renewable energy and other green technologies. Despite this commitment, investments face challenges due to higher rateable values, which increase business rates and deter further investment. Make UK is advocating for the removal of these investments from business rate calculations, as 44% of companies identify this as a major obstacle.
Why It's Important?
The commitment to green technologies is essential for the UK's industrial sector to achieve net zero targets and improve energy security. Addressing the business rate issue could unlock significant investments in renewable energy, reducing emissions and operational costs. This is particularly important as UK energy costs are higher than those in the US, France, and Germany. The government's actions in response to these recommendations could significantly impact the pace of industrial decarbonization and the country's environmental objectives.
What's Next?
Make UK suggests extending the Green Investment relief for business rates and updating apprenticeship courses to include new technologies. They also recommend expanding R&D tax relief to cover industrial automation and decarbonization equipment. These steps aim to encourage further green investments and develop a skilled workforce, potentially leading to a substantial reduction in industrial emissions and costs.
