Removal of tax relief for community energy projects

Meeting: 
MQT on 2015-11-18
Session date: 
November 18, 2015
Reference: 
2015/3681
Question By: 
Jenny Jones
Organisation: 
City Hall Greens
Asked Of: 
The Mayor
Category: 

Question

Following on from your response to the Feed in Tariff consultation in which you warned the Government about the detrimental implications on London's solar PV jobs, deployment and on community energy, will you again lobby the Government and reflect the serious concerns expressed by a coalition of over 100 organisation regarding the Government's latest decision to deny community energy investors access to both Enterprise Investment Scheme (EIS) tax relief and Social Investment Tax Relief (SITR)? Many in this sector see this as the "final nail in the coffin" for future community energy projects.  

Answer

Answer for Removal of tax relief for community energy projects

Answer for Removal of tax relief for community energy projects

Answered By: 
The Mayor

On 4 November 2015, my Deputy Mayor wrote to the Financial Secretary to the Treasury, David Gauke MP, on my behalf, to express my concern about the decision to remove community-generated renewable energy from eligibility for investment tax relief.

I strongly support the rationale of effective targeting of tax relief, avoiding misuse and not doubling up on subsidy or incentives. However, I am concerned that the proposals may endanger the expansion of the sector given the investment required for the upfront capital costs of community-sized renewable energy generation schemes. The short notice, ending eligibility from 30 November, could bring an end to schemes which are in the development and fundraising phase, as well as those that are in the earlier stages.