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Retail calls for eco-tax cuts at green buildings inquiry

Business leaders called for improved tax incentives and tightened building regulations at a parliamentary inquiry this week.

On Monday, the All Party Urban Development Group heard from representatives from UK Green Building Council, Bradford City Council, the Carbon Trust and London Climate Change Agency as well as property firms including CBRE, Drivers Jonas and Quintain.

The energy and environment manager for John Lewis Partnership called on the government to act by improving an existing incentives scheme called Enhanced Capital Allowances (ECAs).

ECAs are a tax rebate against the cost of plant and machinery purchased to improve the performance of a building. Currently, the scheme is so overly complex and restrictive that few manage to benefit. Business leaders want to see ECAs extended to a building's fabric, rather than focusing just on machinery.

Bill Wright, Energy and Environment Manager for the John Lewis Partnership, said:

"There is an important role for government to play in providing the right incentives to support energy efficiency improvements in commercial buildings. Building regulations should be extended and tightened up to ensure a level playing field between competitors, drive up environmental standards and encourage innovation.

"Enhanced Capital Allowances (ECAs) have supported our efforts to make our John Lewis department stores and Waitrose food stores more energy efficient. However, the government could help us to make our shops even more energy efficient by extending ECAs to promote further use of sustainable technologies and materials in refurbishment projects."

NOTES FOR EDITORS

People that gave evidence:

Public sector witnesses

Paul King, chief executive, UK Green Building Council;
Allan Jones, chief executive officer, London Climate Change Agency
David Vincent, director of policy, Carbon Trust (Government-funded agency)
Richard Isaac, City of Bradford Metropolitan District Council.

Commercial property witnesses

Sandra Gomez, associate director, CB Richard Ellis (property agent)
Jon Lovell, Drivers Jonas. (property agent)
Hilary Reid Evans, head of sustainability initiatives, Quintain (developer)
Bill Wright, energy and environment manager, John Lewis Partnership

About the group

The All Party Parliamentary Urban Development Group was established to provide a forum for MPs and Peers from all political parties to come together to raise awareness of matters concerning urban renewal and sustainable development.
The group’s officers include:

• Clive Betts MP (Labour – Sheffield Attercliffe – Chair)

• Lord Richard Best (Cross-bench – Vice Chair)

• Baroness Scott of Needham Market (Liberal Democrat – Vice Chair)

• Rt Hon Nick Raynsford MP (Labour – Greenwich and Woolwich – Hon Chair)

The British Property Federation has been formally registered by the Office of the Parliamentary Commissioner for Standards to provide secretariat services for the group in partnership with the Centre for Cities, an independent urban research unit, carrying out the group’s research.

What is sustainability?

The sustainability of the building stock is not just about energy efficiency but encompasses other factors such as water efficiency and the movement of people and goods to and from buildings. However, the enquiry will focus on energy efficiency.

Other green commitments

Energy Performance Certificates for non-domestic buildings were introduced on 6 April and will be rolled out during the coming months.

The requirement on occupiers of public buildings to produce Display Energy Certificates showing the operational energy rating of such buildings (coming into force on 1 October 2008) is likely to be extended to other types of property. However, many in the private sector are planning to produce DECs on a voluntary basis in any case. These too, will be catalysts for change.

Local authorities have an important role to play in setting carbon reduction strategies for their areas including requirements for the use of decentralised renewable energy. However, such strategies must recognise the need to maintain economic viability and conform with national guidance, allowing the use of on-site, near-site and off-site renewable solutions.

Construction waste forms a substantial part of the waste generated every year, much of which goes to landfill. Construction clients, as well as contractors, have an important part to play in meeting targets for halving the amount of waste that goes to landfill. Solid waste and landfill lie outside the scope of the inquiry.