Spring Budget: Bruce Davis hails “boost” for green lending
The Spring Budget will help to boost green lending initiatives, according to Abundance Investment’s managing director Bruce Davis (pictured).
Chancellor Rishi Sunak used his mini-budget to announce new incentives to help households convert from fossil fuels to renewable energy sources such as solar power.
Sunak extended the VAT relief available for the installation of energy saving materials, and reversed a Court of Justice of the European Union ruling that “unnecessarily restricted the application of the relief”.
The government also announced a time-limited zero rate for the installation of energy saving materials, which means that a typical family having roof top solar panels installed will save more than £1,000 in total on installation, plus £300 annually on their energy bills.
These changes will come into effect from April 2022.
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“Our investors originally backed the privatised Green Deal Finance Company which was recently bought by Tandem Bank who specialise in green loans to households – so this could be a big boost to them,” said Davis.
“It will also be a big boost for the local councils we have been supporting with our climate bonds and investments, reducing the cost of such measures and allowing local residents investment to go further to help their local council achieve net zero.
“On the broader front, reducing the VAT on solar panels and other green measures makes sense given the wider social and economic value they contribute.”
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