A tax partner at one of the UK’s top 20 accounting firms has warned that British Brexit from the EU-bloc is damaging the solar and wind power industries.
Rachel Nutt, Head of Renewable and Sustainable Energy at MHA MacIntyre Hudson, said that British Independence fro the EU is creating a ‘challenging and uncertain time for renewable businesses’.
She explained: “Brexit, and the resulting lack of announcements about future subsidies which have to date supported much of the sector, is causing a period of inertia and stalling many new projects.
“It is creating a very challenging and uncertain time for renewable and sustainable energy businesses.
“We are all assured there is a huge power demand for the future, lack of grid capacity, and a need to hit green energy targets. However, the lack of clarity on funding has caused a significant slowdown in the market.
“Even with the advent of more innovative battery storage capacity and falling solar panel prices, the sector needs a new subsidy announcement to gain serious momentum in the areas of on shore wind and solar.
“The industry is also facing a number of other challenges around new tax law. The new Transactions in Land legislation could result in many large scale projects being subject to the higher tax charge of income tax rather than capital gains tax.
“The future demand for grid capacity is also likely to be a major challenge. The push into BPVs (battery powered vehicles) – and lack of capacity on the grid in the areas where it is most needed – is likely to be a real practical barrier to growth without significant investment.”
With more than 580 staff, MHA MacIntyre Hudson is the UK member of Baker Tilly International, one of the world’s largest independently-owned business advisory firms.