Simon Storer: levy discourages companies.

Community Infrastructure Levy could discourage UK investment

Published:  27 October, 2009

LONDON: Current government proposals for the Community Infrastructure Levy could deter investment in the UK.

The Construction Products Association has warned the Government that current if CIL is levied on the gross development, rather than on the net additional increase of a development, if could deter foreign product manufacturers and suppliers which now own many of the largest companies in the sector.

Commenting on the draft proposals, the Association's communications and external affairs director, Simon Storer said: "Not to allow provision for 'netting off' would completely disincentivise developers who seek to demolish old inefficient factories or warehouses and replace them with newer, more energy-efficient structures.

"This draft proposal discourages companies from taking action that will support government policy in relation to the climate change agenda, most notably the commitment to cut the UK's carbon emissions by 80% by 2050.

"It sends out the wrong message to industry and would hinder the UK's progress along this already enormously challenging path. Under these proposals, if a manufacturer demolishes a building of 1000m2 and replaces it with a modern building of the same size, the manufacturer will still have to pay CIL on the full 1000m2 development, even if the there are considerable savings in CO2 emissions.

"The Government must do its bit to help keep UK business competitive in comparison to our European counterparts, especially at a time when we are trying to lift our economy out of recession," Mr Storer said.

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