Tax & admin Fred Heritage · 25 November 2015
Autumn Statement 2015: Reductions in renewable energy levies could cost small businesses
Chancellor George Osborne has announced plans in today’s Autumn Statement that could see the average small business having to pay an extra 500 and the average household and extra 6 on energy bills in 2020-21. New measures outlined in the chancellor’s Spending Review will see firms involved in energy intensive industries, such as the ailing steel industry, become exempt from the costs involved in the Renewables Energy Obligation and the Feed-in Tariff schemes: measures introduced to curtail the country’s reliance on fossil fuels. It is hoped that exclusion from the schemes will encourage firms involved in energy intensive industries to stay in the UK and remain competitive, whilst saving them a total of 410m a year in tax by 2019-20. National chairman for the Federation of Small Businesses, John Allan, said: We seek reassurance that the 410m a year of lost tax revenue will not be sought from the less intensive and smaller business in the nergy market. the FSB recognises the government’s commitment to exempt the steel and chemicals industries from the cost of environmental tariffs, he added.
ABOUT THE EXPERTFred Heritage
Fred Heritage was previously deputy editor at Business Advice. He has a BA in politics and international relations from the University of Kent and an MA in international conflict from Kings College London.