What is the story about?
What's Happening?
A recent report by Make UK indicates a strong commitment among UK manufacturers to invest in green technologies, despite existing financial barriers. The report shows that over 80% of surveyed firms plan to prioritize renewable energy in their business plans over the next five years. However, the increased rateable values for energy-efficient technologies pose a significant challenge, as they lead to higher business rates. Make UK is advocating for these investments to be excluded from business rate calculations to remove this disincentive.
Why It's Important?
The transition to green technologies is seen as a major economic opportunity for the UK, with the potential to drive growth and create jobs. By investing in renewable energy and decarbonization technologies, manufacturers can reduce costs and emissions, aligning with the UK's net zero ambitions. However, the current business rate system could hinder these efforts, making it crucial for the government to address these financial barriers to support sustainable industrial growth.
What's Next?
Make UK is urging the government to revise the business rate system in the upcoming Budget to encourage green investments. The organization also suggests expanding R&D tax relief and updating apprenticeship programs to include new technologies. These measures are expected to stimulate further investment in green technologies, enhancing the UK's competitiveness in the global market and supporting the transition to a low-carbon economy.
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