Environmental Protection: Taxation

(asked on 9th October 2024) - View Source

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the recommendations from the Confederation of British Industry to implement tax cuts for the manufacturers of (1) electric cars, (2) heat pumps, and (3) biofuel.


Answered by
Lord Livermore Portrait
Lord Livermore
Financial Secretary (HM Treasury)
This question was answered on 23rd October 2024

The UK’s Corporation Tax rate remains supportive of growth and internationally competitive – 25% is the lowest rate in the G7. The Chancellor also confirmed that generous tax reliefs including Full Expensing, the Annual Investment Allowance and R&D will be maintained.

Maintaining these policies and a predictable tax environment for businesses is the most effective way for encouraging investment overall. The Government keeps all tax policy under review and regularly receives proposals for sector-specific tax reliefs. When considering a new tax relief, the Government must ensure it supports businesses in a fair way and that taxpayer money is effectively targeted.

There are already government incentives that support green investment in these sectors. The Heat Pump Investment Accelerator Competition, worth up to £30 million, aims to bring forward investment in the UK heat pump manufacturing supply chain. The Green Gas Support Scheme also provides tariff support to support the building of new infrastructure to produce biomethane.

The Department for Business and Trade’s Automotive programmes also continue to support the development and commercialisation of cutting-edge automotive technologies to support the EV transition and the wider UK supply chain.

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