Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Electric car makers and heat pump firms ‘deserve net zero tax break’

by October 8, 2024
October 8, 2024
Electric car makers and heat pump firms ‘deserve net zero tax break’

The Confederation of British Industry (CBI) has urged Chancellor Rachel Reeves to introduce significant tax cuts for electric car, heat pump, and biofuel manufacturers to accelerate the UK’s path to net zero.

The business group is advocating for slashing the corporation tax rate for companies involved in these sectors to 10%, down from the current headline rate of 25%.

The CBI is also calling for a range of measures to support green investment, including a “green innovation credit” offering a 40% tax relief for companies investing in low carbon technology research and development, as well as an “enhanced green super-deduction” at a rate of at least 120% for businesses building factories for electric vehicles (EVs) and battery manufacturing.

Rain Newton-Smith, chief executive of the CBI, said these moves would solidify the UK as an attractive destination for investment in green technologies, despite the challenging economic environment. “The Budget can provide a tone-setting moment in the Government’s growth mission,” she said, adding that these measures would help foster growth while ensuring economic stability.

The CBI estimates that the proposed 10% corporation tax rate for green technology manufacturers would cost the Government £238 million annually, while the super-deduction would come with a £389 million price tag. Additionally, the CBI is pushing for the VAT on public EV charging to be reduced from 20% to 5%, costing the Treasury £33 million. It also advocates for removing VAT on home improvements like double-glazing to improve energy efficiency.

These proposals come alongside calls from the Institute for Public Policy Research (IPPR) for changes to borrowing rules, allowing the Government to increase public investment by focusing on the UK’s net worth rather than just its debt. According to the IPPR, this could provide £50 billion of additional borrowing headroom, which could be channelled into infrastructure, energy, and healthcare investments to boost productivity.

Carsten Jung, an economist at the IPPR, noted that the UK is stuck in a “low growth trap” due to decades of underinvestment. He said, “The new Labour Government has been elected on a platform to change this,” and urged the Chancellor to shift the focus toward long-term investment.

Ms Reeves has indicated that she may be open to revisiting the Government’s borrowing rules, with a view to fostering public and private investment in green technologies. Speaking to the Financial Times, she said: “I hope that at the Budget the OBR will look at not just the short-term impact of boosting capital investment but also the long-term impact and the catalytic impact of public sector investment crowding in private investment.”

These proposals reflect a growing call for the UK Government to provide the necessary fiscal and policy support to drive the transition to a low-carbon economy and meet its ambitious net zero targets.

Read more:
Electric car makers and heat pump firms ‘deserve net zero tax break’

0
FacebookTwitterGoogle +Pinterest
previous post
Saudi Arabia acquires 40 per cent stake in Selfridges, partnering with Thailand’s Central Group
next post
How Businesses Can Benefit From Fleet Tracking

You may also like

Secrets of Success: Simon Biltcliffe – Executive Chairman,...

December 12, 2023

Exploring Nonprofit Innovation with Gon Erez

November 23, 2024

Irish economy recovering strongly

June 5, 2023

Avalara Expands Partnership with Oracle NetSuite to Deliver...

October 17, 2023

Investing in Grenada Property for Securing Citizenship

November 11, 2024

Octopus Energy to Repay £3bn Taxpayer Support for...

June 22, 2024

Company Insolvencies Surge by Nearly 20% in April

May 18, 2024

President Macky Sall leaves Senegal’s economy flourishing, despite...

January 12, 2024

How to Pay HMRC with Credit Card

December 30, 2024

Former owners buy back Butlin’s from private equity...

September 21, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved