Chancellor Alistair Darling should use real tax incentives to boost green energy production, claims PKF.
Lisa Macpherson, the mid-tier firm's national director of tax, said his predecessor Gordon Brown introduced tax reliefs to help the UK film industry raise huge amounts of investment capital. 'Widespread use of the film tax reliefs has proved that the tax system can change investors' behaviour,' she said.
Darling told the TUC he thinks the UK could create one million new 'green-collar' jobs in the next 20 years, but the scale of the government's current investment is very modest compared to spending on health or education.
Macpherson said: 'If Darling is serious about his three energy goals: security, clean green generation and low prices, he has to use the limited investment funding at his disposal very wisely.
'Carefully constructed tax breaks for investors will gear up the investment capital that can be pumped into the UK's green energy sector at a time when all businesses are finding it harder to find funding.'
She added: 'Simple relief structures, similar to the ones used for Enterprise Investment Schemes or Venture Capital Trusts, but without their restrictive limits on total funds, would capture investors' attention and ensure vital long term funding for this key industry.'
Croner Intelligence workflows guide users from query to finished letter, Register for the Budget 2026 tax changes webinar now, and HMRC warns taxpayers to declare all qualifying income streams for MTD
Summary provided by AI