Business energy tax is too complicated
The Government recently launched a consultation into business energy tax. The Exchequer secretary Damian Hinds is asking for your views
The government knows that the current business energy taxation system is far too complicated and we are determined to create a system that works for business, while still boosting productivity and reducing our carbon emissions.
That’s why we laid out plans in the summer budget for a review of the business energy efficiency tax landscape. And last month, I launched a consultation into business energy taxation.
This consultation is looking at how we can help businesses by reducing administration costs and improving incentives to invest in energy efficiency.
The complexity of the business energy tax landscape has been identified as holding back investment in energy efficiency and decarbonisation and I recognise that some businesses are currently required to report emissions and energy consumption multiple times in different ways. We want to simplify and reduce compliance costs for businesses.
We also want to improve the productivity of UK businesses, and create a more prosperous nation.
While we have been successful in recent times in growing employment, we need to focus on productivity to drive the next phase of growth, and raise living standards. Energy efficiency is a key part of this, boosting productivity and thereby supporting growth and competitiveness.
Finally, we are also committed to meeting our environmental targets. Improving the energy efficiency of businesses will help the UK decarbonise effectively. Many businesses tell us that there is cost-effective potential to save energy and carbon in business sectors that is not currently being realised. We need to unlock this potential.
To help us achieve the right system for all businesses, we need you to highlight which aspects of the current system are successful and which are in need of improvement.
I have been meeting businesses to listen to their views over the last month, but our consultation is open until 9 November and I want to hear from business energy users of all sizes so that we can design a system that is right for the future.