‘Chancellor needs to incentivise private sector investment in green economy’
The Chancellor Rishi Sunak needs to incentivise private sector investment in green economy, say tax and advisory firm Blick Rothenberg. The Government continues to look to minimise the impact on public finance of the Prime Minister’s Green Recovery Plan by raising money through the private sector. David Hough, a partner at the firm spoke to Business Leader about the issue.
In his speech at the mansion House the Chancellor has provided more detail on his green gilts to provide funding of £15bn in the first financial year.
This will need to appeal to savers, but the Chancellor needs to unlock institutional investment in the green economy. He can do this through enhanced green research and development tax reliefs for businesses that are acting as pioneers in reducing carbon emissions This includes those making advances in carbon capture, battery storage capability and in energy generation.
He also needs to providing access to finance for all homeowners to reduce emissions, through installation of solar panels, replacement of gas central heating and purchase of electric cars which will ignite the green economy further.
Confirmation of enhanced Sustainability Disclosure Requirements for businesses is a positive step in obtaining investors information they need when making decisions and providing better information to consumers on business attitude to carbon reduction.
However, more support needs to be given to businesses to comply with the rules. Guidance on how to calculate emissions and water usage, and how this information can be retained on an ongoing basis. This is absolutely crucial in ensuring that readers of financial statements gain access to informative data, and this does not becoming a box ticking exercise.