FTSE business bosses urge Cameron to re-think cuts to renewable energy

A growing number of companies are urging the UK Government to rethink plans to cut green renewable energy subsidies, as the Paris climate-change talks are about to get under way.

The Financial Times is reporting that a wide range of businesses – including some of Britain’s biggest companies – have written a letter to the Prime Minister suggesting that the long list of cuts in renewable energy – pose a ‘risk to UK business’. 

The signatories to the letter are a diverse range of major companies such as Vodafone, Unilever, Panasonic, BT and Marks & Spencer.

They argue that confidence has been undermined by all the changes and cuts – and that they are now impacting on the UK’s ability to compete and that investment is now under threat.

SNP Energy and Climate Change spokesperson Callum McCaig, MP, commented: ”These latest voices criticising the UK Government’s reckless attack on renewable energy add to an already long list demanding an urgent change in tack. 

“Westminster’s treatment of the renewables industry has destroyed confidence right across the energy sector, which will drive investment overseas and ultimately push up the price of bills for consumers. 

“The Tories have mounted an assault against the renewable sector hitting Scotland very badly. Even the United Nations Chief Environment scientist, Professor Jacquie McGlade, has described the UK Government’s renewables cuts as ” reckless, regressive and irrational ‘ and has described the plans to cut support as ‘ a serious – very perverse signal”.

Rhian Kelly, CBI Director of Business Environment policy, commented: “Firms need confidence to invest in this future though, so the climate-change conference is a golden opportunity to create the long-term frameworks that businesses crave. This means a clear sense of direction, support for carbon pricing that can drive investment and getting finance and technology flowing.

“So much effort has been put into agreeing frameworks ready for Paris, we simply cannot afford to fall at the last hurdle, and delay a lasting, global plan for climate action. All businesses, especially energy-intensive industries, will be looking for an international deal which helps create a level playing field, and that keeps the UK competitive.”