Budget 2009: Green issues high on agenda for Chancellor

CHANCELLOR Alistair Darling today pledged to support the future of green industries and innovation as well as announcing a £1bn investment programme to combat climate change by supporting low-carbon industries.

The enviroment played a large part of Mr Darling’s Budget speech, in which he pledged £435m of extra support to deliver energy efficiency measures for homes, firms and public buildings.

The Chancellor said the Government was committed to cutting carbon emissions by 34% by 2020.

Mr Darling pointed to the importance of renewable energy and unveiled £525m of new support over the next two years for offshore wind projects.

He also pledged a further £405m to encourage low carbon energy initiatives and advanced green manufacturing.

To encourage the use of combined heat and power technology, new power plants using the technology will be exempt from the Climate Change Levy from 2013.
  
He said redundant oil fields needed to be brought into production in order to create a further 2bn barrels of oil.

Terry Jones, at accountants and business advisers BDO Stoy Hayward in Leeds, said: “The Chancellor has today announced that the recovery and future growth of the UK economy will be led by investment in low carbon and other energy efficient technologies with investment in this area of £1bn. 

“Specifically the measures introduced were investment of £525m in offshore wind projects to generate electricity for approximately 3m homes and investment of £435m in energy efficiency measures and the exemption of the climate change levy for combined heat/power projects.

“From a Yorkshire perspective there is already considerable expertise in this area which includes Biomass power generation and the production of fuel and other chemicals from Green sources. Yorkshire should, therefore, be well placed to take advantage of any government investment. The Chancellor talked about this area of the economy creating thousands of businesses and 100,000s of jobs.

“There are some further changes, although nothing fundamental, to the list of technologies on which enhanced capital allowances are available. We had hoped that the Chancellor would go further and enhance the system to make it more effective for businesses.”