The Government has to incentivise UK scientists and business entrepreneurs by giving them a variety of tax breaks if it is meet its green agenda, say leading tax and advisory firm Blick Rothenberg.
David Hough, a partner at the firm said: “The Government’s 10-point green plan is a positive step in addressing the challenges of climate change but in order to make the UK the centre of the green economy further scientific and business incentivisation is needed right now.
“The challenge of becoming net-zero is a global one and for countries that develop the skills, expertise and infrastructure early there is an opportunity for significant export in the next few decades and the UK needs to be at the forefront.”
David added: “Developing sophisticated technologies such as carbon capture, enhanced vehicle battery life and low emission aviation requires significant investment in research, training and infrastructure. It is fair to say that the economic opportunity for countries that lead the way in developing technology to address climate change can generate a strong financial return due to the export opportunities it brings.”
David said: “However the financial commitments made by the Government are modest and there needs to be an acknowledgement that research and development of new ideas is inherently risky.
He added: “Enhanced research and development tax credits for green initiatives could help put funds back in the hands of green technology entrepreneurs to further their ideas and we need the Chancellor to carefully consider the pitfalls of the Office for Tax Simplification’s suggestion to align Capital Gains Tax with Income Tax.
“Low tax rates for Entrepreneurs, and their investors, encourage investment in the UK and there is a risk that the UK is left behind, and crucially jobs are created elsewhere, if the green economy is not incentivised by the Treasury.”
David said: “We need a clear road map of how the various elements of the plan will contribute to net-zero and what the technological developments required are. Incentivised investment should be targeted on solutions to address shortfalls in the plan ensuring that money is spent where it is required, and contracts are awarded at a good return to the taxpayer.”