More clarity needed on green support for West Midlands firms - Chamber
More clarity is needed on green investment and support for West Midlands firms, Greater Birmingham Chambers of Commerce 's environment lead has said in reaction to measures outlined in the Chancellor 's Budget.
Chancellor Rishi Sunak revealed in his Budget on Wednesday that the Government would commit to its first infrastructure bank.
The bank would have £12billion initial capital and is expected to stimulate a further £40billion private investment for green public and private projects across the UK.
To spur further investment, a super-deduction tax relief for businesses was also introduced for firms investing in their business over the next two years.
Businesses can reduce their tax bills by 130 per cent of the cost. The government says that this will focus on new plant and machinery assets.
Additional measures included a green savings bond to give all UK savers a chance to support green projects, more funding for offshore wind projects, and the Bank of England has said that it will update its monetary policy to reflect the importance of environmental sustainability.
A range of schemes announced as part of the Budget built on the Energy White Paper and the ten-point Plan for a Green Industrial Revolution, covering green innovation.
These include a £375 million Future Fund Breakthrough, £20 million to develop floating offshore wind demonstrators, £68 million for a competition on unique energy storage technology, a £4million biomass feedstocks programme, and at least £15 billion of green gilt issuance this financial year, aiming to help finance climate change and environmental challenges.
Although Will Hargreaves, policy adviser at the Chamber, welcomed the finance and clean energy initiatives, he said that the green measures outlined in the Budget felt “light ”.
He added that the Chancellor failed to mention how the government will tackle business energy efficiencies, low-emission vehicle uptake or outline any support for regional businesses.
He said: “It is welcomed that this Budget focussed on supporting the economy and businesses for the last stage of lockdown, with the Chancellor making it clear this is not the time to raise taxes and costs. This will help businesses get back on their feet and provide some much needed relief and certainty for the rest of the year. ”
“The green finance and clean energy innovation announcements are also welcomed. In particular, the confirmation of a new National Infrastructure Bank, which will focus on driving investment for the green industrial revolution.
“Furthermore, the new super-deduction tax relief provides opportunity for businesses to invest in low carbon technology, contributing to tackling local air pollution and the climate emergency.
“However, the green measures still felt a bit light. There was no mention of how the Government will tackle business energy efficiency or low-emission vehicle uptake.
“It was also disappointing to witness the omission of low carbon support for sectors that are crucial to reaching the legislated target of net zero by 2050. These are some of the worst impacted sectors by the pandemic, such as the automobile, manufacturing and aerospace sectors.
“Additionally, with promising proposals of a gigafactory in Coventry, there is a need for clarity on green investment and support for businesses in the West Midlands.
“With the international COP 26 conference in November, there are likely to be further environmental updates. As a Chamber, we will continue to inform businesses on how developments will impact them and the steps they can take to prepare. Our briefing paper, Net Zero and the Business Community, introduces businesses to net zero, why it 's important, and what it means for them. ”
To view the Chamber 's Net Zero and the Business Community briefing paper, click here