2008-09-04
The Government today addressed business industry concerns that the prospect of an increase in business rates acts as a disincentive for companies to invest in microgeneration.
Local Government Minister, John Healey announced steps to provide clarity, reassurance and certainty to businesses working to reduce their carbon footprint so they are protected from an immediate and automatic revaluation of the business rates they pay.
As part of the Government's drive to cut carbon emissions and tackle climate change, amendments to legislation published today will prevent any investment by a company in energy microgeneration - such as solar panels, wind turbines or ground source heat pumps - from triggering an immediate revaluation of their premises because of this action, and therefore possibly their business rate bills.
Under current procedures, any material improvement to a property can automatically trigger a reassessment of its rateable value. Under these new plans, the valuation assessment will be delayed until the first general revaluation after the technology is installed.
Contrary to some perceptions, the installation of microgeneration equipment may not automatically lead to an increase in the rateable value of a property and therefore results in an increase in business rates bills.
Today's announcement will help provide assurance to greener businesses, and dispel concerns that a perceived increase in business rates and the cash investment in the technology will happen at the same time.
John Healey said:
"We all need to do our bit to reduce our carbon footprints. Small scale energy generation, like installing solar water heating or a biomass boiler, can be a cost-effective way to do this. By 2020 a significant amount of the renewable heat generated in the UK could come from small scale installations".
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Source: Communities and local government |
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