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Alistair Darling must use real tax incentives to harness the financial muscle of private investors to boost green energy production, according to tax expert Lisa Macpherson.
The Chancellor yesterday announced, in a speech to the TUC conference, that he believes the UK can create one million new 'high-value green-collar' jobs (ones in the 'low-carbon industry') within the next 20 years.
However, the scale of the Government's current investment is currently very modest compared to spending on health or education, claimed Ms Macpherson, who is PKF's national director of tax.
She added that the UK lags behind its European neighbours in green energy production capacity, and technologies including coal fired carbon capture and storage power stations are still in states of conception in this country.
'If Alistair Darling is serious about his three energy goals - security, clean green generation and low prices - he has to use the limited investment funding currently at his disposal very wisely,' said Lisa.
'Carefully constructed tax breaks for investors will gear up the investment capital that can be pumped into the UK's green energy sector at a time when all businesses are finding it harder to find funding.'
She continued: 'Simple relief structures - similar to the ones used for Enterprise Investment Schemes or Venture Capital Trusts, but without their restrictive limits on total funds - would capture investors' attention and ensure vital long term funding for this key industry'.
