Local Government taxation undermines national Government promotion of Green Energy

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Installing Renewable Energy -
The Gord giveth and the Gord taketh away!

The Government needs to have a consistent approach to the introduction and encouragement of renewable energy, in particular locally installed microgeneration.

While the outward face of the Government is one of encouraging the introduction of green energy with enticements such as Enhanced Capital Allowances, grants and publicity. Other areas of Government, particularly local, are actively discouraging it. The VOA - ("Valuations Office" that sets the rate of Council tax appropriate to any particular property) are proposing to increase Council tax bands where microgeneration is installed. The local planning office, depending on area can prevent the installation of such as solar panels, and charge for the priveledge!

Even with Government financial incentives, most microgeneration is installed by individuals and firms both as a very long term marginal investment and for the sake of the planet rather than profit.

Clearly with the VOA proposing to tax the installation of solar and wind installations, having a "green" house could be a serious disincentive for a potential buyer in that the environmentally friendly house, rather than selling for a premium will actually be worth less due to the higher council tax band!

Add to this the cost of applying for planning permission - potentially hundreds of pounds - and those of us who wish to follow Government pressure to be proactively green will actually be punished through the imposition of costly beaurocracy and further taxation!

Brown calls for a green revolution in Britain

David Byers Times Online, November 19, 2007

Gordon Brown today made his first speech on the environment since becoming Prime Minister Gordon Brown today called for a "technological revolution" similar to the development of the steam engine to combat the effects of global warming.

The Prime Minister promised to cut Britain's carbon dioxide emissions by at least 60 per cent by 2050. He then went further, promising to consider reducing them by as much as 80 per cent, in his first speech on the environment since coming to power.

Doing so would require drastic changes to the UK's energy sector, he said, creating new business opportunities.

The added value of the low carbon energy sector to the worldwide economy could potentially be high as three trillion dollars per year, and it could create 25 million jobs, of which one million would be in Britain.

New taxes will hurt small firms that try to go green

Andrew Murray-Watson, Independent 11 November 2007

Small businesses that want to do their bit for the environment face higher tax bills.

The Conservatives have warned that SMEs that want to tackle climate change and install green energy technology will face a hike in their tax charges.

The Valuation Office Agency (VOA), an arm of Inland Revenue, is preparing to tax solar panels, wind turbines and micro-generation technology with higher business rates and council tax.

This follows news that Gordon Brown is set to abandon Tony Blair's targets on renewable energy.

The small print of last month's pre-Budget report revealed that "the installation of micro- generation equipment in business premises can trigger an increased liability for business rates".

Parliamentary Questions have also revealed that green energy measures will result in higher council tax bills. Such measures can push a home into a higher council-tax band when the house is sold or after council tax revaluation.

The VOA is already undertaking training and preparations for the revaluation. The inspectors are also responsible for inheritance tax valuations

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