A dampener on green initiatives.

Tax and red tape deter small firms from going green

Published:  10 August, 2011

UK: Small businesses believe going green can boost their bottom line – but see tax and red tape as major barriers to becoming more environmentally friendly, according to Forum of Private Business research.

Just 10% of business owners responding to the Forum's latest environmental panel survey have done nothing to reduce steep utilities costs while 41% have streamlined business processes, 28% have reduced energy usage and the same number have embraced more energy-efficient equipment.

While 77% of respondents disagree that being green is impossible in the present economic climate 52% argue that green taxes inhibit their ability to invest in reducing energy use and 75% believe that environmental legislation focuses on the needs of larger businesses rather than small companies.

In all, 52% of the small businesses surveyed believe they cannot become more environmentally friendly until they are able to be more profitable.

The Forum's chief executive Phil Orford said: "Small businesses see the benefits of green practices and technologies to the environment and, given rising energy costs, to their bottom lines. They are clearly taking steps towards introducing them but the lack of adequate support from the Government and utilities providers is frustrating.

"We need better information about the choice of support and equipment that is available, and incentives to help business owners embrace environmental processes and trade more sustainably locally, regionally and internationally, rather than ever more taxation. Small businesses should be at the forefront of thinking about the green agenda."

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