2011 Budget - a kick-start for UK Green Economy? - Business Works
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2011 Budget - a kick-start for UK Green Economy?

T he Government’s own figures state that global environmental market place is currently worth £3.2 trillion and is growing at over 5% a year. The UK’s environmental industry is currently valued at £112 billion and employs one million people.

"It is important the Government understands that environmental issues will be the backbone of any ‘green economy'," said Adrian Wilkes, Chairman of the Environmental Industries Commission (EIC). "Our Industry is in a position to play a critical role in lifting the UK economy – delivering the ‘double dividend’ of job creation across the UK while reducing environmental pollution."

"This is not only the defining challenge of the coming decade, but the defining business opportunity for the Coalition Government."

"We are all aware that the current state of the economy is a massive problem. It has been tough for all sectors and a lot of our member companies have suffered. However, if the Government takes an innovative approach and uses fiscal measures such as Tax Incremental Financing, this will send a strong signal to business. Our 230 Member companies are reporting that they are starting to see the flicker of light coming back. We don’t want to see the Government dampen these shards of light out by not considering all of its fiscal options."

EIC‘s 2011 Budget Report calls for the Chancellor to implement two key strategies. Firstly, to put a price on pollution and, secondly, it recommends that the Treasury provide clear investment incentives to grow green businesses. The latter should be funded through more pollution taxes and the use of a new Tax Incremental Financing mechanism focused on:

  • Energy Efficiency retrofitting of all public buildings
  • The redevelopment of Brownfield land
  • The construction of new waste infrastructure
  • The implementation of Sustainable Urban Drainage systems.

"The Treasury must realise that these are markets with real jobs and growth potential in which the UK can and must lead from today," concludes Wilkes.

Environmental Industries Commission:

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