Gordon Brown to tax local firms for going green!?

Businesses trying to tackle climate change and installing greener energy technology face higher taxes, Conservatives warned today. The Valuation Office Agency, an arm of Inland Revenue, is preparing to tax solar panels, wind turbines and micro-generation technology with higher business rates and council tax bills. This follows the news that Tony Blairs targets for renewable energy are set to be abandoned by Gordon Brown. 

  • Higher business rates for green energy: The small print of the Pre-Budget Report earlier this month admits that “the installation of micro-generation equipment in business premises can trigger an increased liability for business rates”. It pledges not to increase bills until the next revaluation – yet the rates revaluation inspection process will start next year, with new bills issued in 2010.
  • Higher taxes wipe out energy saving benefits: Previously unseen research by the Renewable Energy Association, obtained by Conservatives, has calculated that the higher business rate liability "more than wipes out the value of the electricity generated". As a result a solar panel "will never achieve a payback, but would be a continual financial drain on the company". A typical wind turbine for commercial premises will increase the business rates bill by £1,350 a year, while a solar (photovoltaic) installation will mean an extra £2,700 a year in rates.

Eric Pickles MP, Conservative Shadow Secretary of State for Local Government, said:

“Rather than using the tax system to reward green behaviour, Gordon Brown is crippling small businesses  who want to do their bit to tackle climate change, hitting them with unfair stealth taxes. Firms who install solar panels or wind turbines will face soaring business rate bills. This will wipe out their electricity savings and discourage them from going green, in turn increasing carbon emissions.

Can anyone shed a light whether this is true? I can't seem to find anything to back this up. 

Are we not encouraged to do what we can to reduce carbon emissions? To help our environment that we all share and contribute to a healthier planet and now we're being charged to make these changes!?

I think our country has gone mad - introducing all these new legislations is like living under a rule book and our freedom seems to be slipping through our finger tips uncontrollably but thats another story! 

 

 

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