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CPA warns government on levy plans

The Construction Products Association has warned the government that investment in the UK could be at risk if it goes ahead with plans to widen the scope of the Community Infrastructure Levy.
Under these proposals if a manufacturer demolishes a building of 1000sq m and replaces it with a modern building of the same size the manufacturer will still have to pay CIL on the full 1000sq m development, even if the there are considerable savings in CO2 emissions, said the Association’s communications and external affairs director, Simon Storer.

“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 completely the wrong message to industry and would hinder the UK’s progress along this already enormously challenging path.”

Additionally the Association is concerned that unless ‘netting off’ is accounted for when applying CIL, the levy will directly discourage investment in the UK by foreign product manufacturers and suppliers which now own many of the largest companies in the sector. 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.

About Fiona Russell-Horne

Group Managing Editor across the BMJ portfolio.

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