More than 200 firms slam government's zero carbon U-turn

More than 200 business from across the construction and renewable energy industries have urged chancellor George Osborne to reconsider his scrapping of the zero carbon homes target.

In an open letter to the chancellor organised by the UK Green Building Council (UKGBC), senior leaders from 246 organisations have warned that the policy U-turn has “undermined industry confidence in government” and will “curtail investment in British innovation and manufacturing”.

Signatories of the letter include senior directors and executives at Aldersgate Group, Argent, Bouygues, Buro Happold, Lendlease, Sir Robert McAlpine and Willmott Dixon.

The letter says of the zero carbon policy: “Last Friday, we were extremely disappointed to learn that this policy is being arbitrarily scrapped, despite the fact that the necessary primary legislation only acquired Royal Assent in February this year.

“There was a broad consensus in support of the zero carbon policy, which was designed to give industry the confidence it needs to invest and innovate, in order to drive higher energy efficiency standards and low carbon energy solutions.”

It adds “there is no evidence” that the decision will “increase housing supply or boost productivity”, and says: “Abandoning the zero carbon policy will have regressive impacts and be harmful to British industry.”

The letter calls on the Chancellor to reconsider the decision and work with business leaders to “find a mutually acceptable way forward.”