The business rates overhaul could be key in helping the government achieve its target for the country to become net-zero carbon by 2050, a new report has claimed.
Avison Young and CBI claim the current business rates system “penalises firms” that may want to invest in retrofitting their properties but face a higher business rates bill.
In their Green Light for Investment report, CBI and AY urge the government to ensure business rates reforms measures are introduced so that decarbonising buildings, which make up around 40% of the UK’s total carbon footprint, is encouraged.
The report outlines measures the government should enforce to create a modern sustainable business rates system, which includes:
- allowing companies to make improvements to existing properties and receive a minimum 12-month exemption from business rates payments;
- exclude equipment and tech investments linked to the green agenda;
- ensure buildings that are undergoing EPC rating improvements are exempt from business rates linked to EPC improvements;
- a review of the plant and machinery regulations
AY business rates principal and managing director David Jones said: “Our proposed reform measures seek to encourage good behaviour and help drive higher levels of green investment across the commercial property sector.
“A business rates reform must reflect the challenges of the 21st century and encourage businesses to invest in clean energy solutions and do their part in furthering the green agenda.”
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