Business rate increase - solar on businesses

Meeting: 
MQT on 2017-03-22
Session date: 
March 22, 2017
Reference: 
2017/2086
Question By: 
Caroline Russell
Organisation: 
City Hall Greens
Asked Of: 
The Mayor
Category: 

Question

In answer to my question 2016/3673 you said that you will write to the Government regarding the proposed business rate increase for businesses that own solar panels, which you described as "likely to have a significant detrimental impact upon the financial business case for installing solar PV". What is a) your response to the Chancellor's silence on these proposed business rates in the recent Budget, and b) the potential effect on your forthcoming solar action plan?

Answer

Answer for Business rate increase - solar on businesses

Answer for Business rate increase - solar on businesses

Answered By: 
The Mayor

In January my Deputy Mayor for Environment and Energy Shirley Rodrigues wrote to HM Treasury regarding the impact of proposed business rate increases. We suggested an exemption from the proposed increase in rates for rooftop solar installations. The response we received from Government did not address the exemption suggestion, instead once more highlighting the transitional relief scheme. If businesses remain concerned about the rateable value set by the VOA, we were reminded that they can challenge that valuation through the VOA and, ultimately, through the independent Valuation Tribunal Service.

We have not officially responded to the recent Spring Budget. We will continue to liaise with Government regarding the minor changes required to avoid the detrimental impact on solar PV (used on site) of the proposed business rate changes. Lacking control over business rates in London, we will also prepare for the proposed changes.

My solar action plan will establish how the GLA can best guide businesses to install solar in the most cost effective fashion.