The Chancellor has given an indication of the direction of the 2007 Comprehensive Spending Review with a raft of environmental measures in his pre-Budget report.
An obligation to increase the level of electricity sourced from renewable resources; encouragement to improve energy efficiency; a reduction in VAT on the installation of energy saving materials; lower fuel duty on bio-fuels; no stamp duty on zero carbon homes: these are just some of the measures announced in the Chancellor’s pre-Budget report.
In advance of the 2007 Comprehensive Spending Review, this focus on energy generation and efficiency comes in response to the environmental issues and high energy costs being felt in the UK and around the world.
Sustainable construction is being encouraged with the increase of Climate Change Levy rates from 1 April 2007 and £7.5 million to improve coordination between Warm Front and the Energy Efficiency Commitment initiatives. Higher standards for new and refurbished schools will ensure a reduction of carbon emissions by 60% and, by 2016, Brown pledges that all new homes will be carbon neutral.
Construction Products Association economics director, Allen Wilen is skeptical, saying: “We are disappointed that Government has not recognised the pressure the industry is facing with recent increases in energy costs and continues to increase the Climate Change Levy. It is harming the competitiveness of UK firms, compared with foreign industries.”
However, David Miliband, Secretary of State for the Environment, said: “The UK is recognised for its commitment to the battle against climate change. The pre-Budget report contains important measures on the international and domestic fronts consistent with the government’s belief that every part of the economy and society must play its part in the battle against climate change.”
Source
Electrical and Mechanical Contractor
