Body criticises eco-fuel policy
The Forum of Private Businesses has criticised the government's decision to replace an incentive to use eco-friendly fuels with regulation.
The government announced in the 2008 Budget that it would stop the 20p a litre reduction for firms that invest in bioethanol and biodiesel in Spring 2010 and replace it with the Renewable Transport Fuels Obligation, which specified that by 2010 at least 5% of all fuels sold in the UK will have to come from sustainable sources.
"There appears to be a future strategy of using the stick rather than the carrot to implement green initiatives," said the FPB's chief executive Phil Orford.
"This will not only force businesses to comply with yet more red tape, but also removes any financial benefits for going green. This is yet another long-term issue that is being addressed by short-term, cost-saving policies."
Before the Budget was announced, an FPB survey revealed that 78% of small firms would consider investing in sustainable initiatives if they were offered tax incentives.
Post Date: April 8th, 2008