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Press Release

RETAILERS DISMAYED AS ODPM CONTINUE TO TAX RETAILERS ON RENEWABLE ENERGY SYSTEMS

1 December 2005

The British Retail Consortium (BRC) has today written to the ODPM, urging Ministers to reconsider the policy of taxing renewable energy systems. Currently, retailers looking to do their bit on climate change by investing in carbon free renewables are hit with increased business rates.

While the Government is asking businesses to invest in renewables and do more towards achieving the Government's 2010 target on renewable energy generation, the ODPM has refused to exempt carbon free renewable energy systems (such as wind turbines and solar panels) from business rates. However, Combined Heat and Power systems, which still emit carbon, are exempt.

Currently, investing in renewable energy systems is an unattractive and costly option and for many retailers, an impossible one. Instead, it is more cost effective for retailers to source their energy needs from the National Grid.

Kevin Hawkins, BRC Director General said: “It is clearly anomalous for the Government to exempt plants that emit carbon from valuation but to continue to rate entirely carbon free renewable plants. The exemption should be extended to also cover renewable energy systems.

“The retail sector wants to play its part and could even take the lead in adopting renewable energy systems, but leading UK retailers, who look to reduce their carbon emissions by investing in these systems, are getting taxed - this is hardly an incentive. Retail investment in renewables must be encouraged by consistent policy support from Government.

“We have written to the Government today, to urge them to reconsider - this is a common sense approach and one that could go some way to helping Government achieve its 2010 target.”




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British Retail Consortium

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