On the need to dramatically improve the poor energy efficiency of the UK’s existing building stock, he said, ‘Unlike in the USA, the UK always seems to have a reluctance to use carrots and sticks in the tax system to drive behaviour and redirect capital investment. There is good evidence that tax allowances change investment decisions — and these allowances can be temporary.
‘I would certainly advocate a much higher level of Enhanced Capital Allowances for investment in energy-saving plant and building adaptations. However, I think the simplest route may be to use the property rates system to reward those who occupy energy-efficient buildings .’
Francis Salway reminded his audience of construction professionals that buildings account for 44% of carbon emissions and that real progress on reducing carbon emissions will not be met unless the energy efficiency of the UK’s existing stock is improved. However, only 2% of the UK’s building stock is renewed each year.
Keywords: sustainability, Land Securities
