Deviating from the UK’s existing emissions commitments would be destabilising for business

In light of media speculation around the future of the UK government’s net zero commitments, the IoD has released the following statement.

Alex (Alexandra) Hall-Chen, Senior Policy Advisor at the Institute of Directors, said:

“The UK business community recognises the importance of building a sustainable economy. Our own survey data shows that over 80% of IoD members believe that it is important for their organisations to operate in an environmentally friendly and sustainable way, and many businesses have already made excellent progress towards achieving net zero by 2050.

“Now more than ever, business needs stability and a long-term vision from government. The UK’s net zero by 2050 sets out a clear path and timescale for business to achieve net zero emissions. Crucially, it supports business in building net zero into their long-term planning. Deviating from the UK’s existing emissions commitments and undermining its global leadership on this issue would be destabilising for UK business.

“We welcome proposals to reduce the tax burden on UK business, particularly proposals to reverse the damaging increase in employers’ National Insurance Contributions which act quite simply as a tax on jobs. However, as businesses consider how they can achieve net zero, there is also an opportunity to use Corporation Tax to incentivise the action that is required. We believe the government should create a future ‘wedge’ between the corporation tax paid by those businesses that are net zero and those that are not, creating a clear incentive for all businesses to achieve the desired change. This simple, yet significant policy change could be a huge stride towards meeting this country’s climate change target.”