MP Chris Skidmore recently published the final report called Mission Zero and made 129 recommendations. A few of those were specifically around tax policy, so I've summarised them here ...
The Government is already seeking to address some of this. They have a consultation running about better-targeted support for green technology, but I do feel that more could be done to help businesses transition. Reliefs need to go beyond just R&D to actually incentivise the use of low-carbon technologies.
And how about a successor to the super-deduction? I support any move to incentivise investment in green technology, but I wonder if capital allowances will actually increase investment? Tax reliefs will help, but when we're all suffering from cash flow issues during a wobbly economy, will it be enough?
Changes to indirect taxation are also being considered in the report. It recommended that VAT be cut on product repairs (rather than replacing something, why not fix it?) and making the zero rate on energy-saving materials permanent.
And there is a discrepancy in the cost of charging electric vehicles domestically and at public charging points. Currently, it's a 5% charge for home charging, but is 20% on a public charger. The report suggests these need to be harmonised.
There are many other recommendations in the report and I particularly like the part about delivering green jobs with more flexibility for the apprenticeship levy, aligning it with the Government's own net zero and growth priorities.
Reforms to fuel duty and road taxation are also considered, but I am a little disappointed that there was no roadmap for reform, especially as this has a major effect on the long-term sustainability of the public finances.
If you'd like to read the report yourself, you can download the PDF by clicking here.
If you feel inspired to find out more about anything I've said here, do call me on 01908 774320 or leave a comment below and I'll be in touch as soon as I can.