Josephine Bush, Power & Utilities tax leader at EY, comments on green measures announced in today’s Budget and the need for the UK tax system to support these initiatives:
“It’s great to see Government support for Carbon Capture and Storage (CCS) as well as other green measures that support carbon reductions. This technology, coupled with other technologies designed to reduce carbon emissions, is a positive addition to the energy mix.
“The significant capital spending needed to give life to such projects could be further supported by the tax system, particularly the capital allowances regime which gives tax relief for capital expenditure. Whilst not announced today, this could be something the Chancellor looks at in the Autumn Budget as such relief can be crucial to the economic viability of carbon reduction projects.
“The transport sector is a big contributor to carbon emissions. It’s encouraging to see Government action on initiatives to reduce carbon emissions by encouraging the take up of zero emission cars and incentivising the shift to green fuels through improving refuelling infrastructure. While a holistic approach to the decarbonisation of the economy is required, the focus on key sectors contributing to carbon emissions has got to be a good starting point.”