Ivory backs proposals for tax breaks for green savings in North Norfolk

Trevor Ivory explains how the latest Conservative tax proposals will help savers and the environment.  Local people across North Norfolk could take advantage of tax breaks, if they invest their money in environmentally responsible companies and green technologies, under plans being drawn up by Conservatives.  Trevor Ivory welcomed the proposals for new 'Green ISA', which will allow the public to save money without paying tax on the interest, up to a certain limit.   Under the new Conservative plans, there would be a generous tax-free savings allowance for the new Green ISA, over and above the current £7,000 for stocks and shares ISAs. There would be clear criteria for firms to obtain a green 'kitemark', enabling them to qualify for investment under the Green ISA. This would create a major incentive for local and national businesses to curb their emissions and adopt greener technologies and practices.  This proposal follows Conservative plans to reward people for installing green energy, such as solar panels or mini-wind turbines. Energy companies will pay local firms and householders for the green electricity that they produce. Low-carbon energy is not only eco-friendly, but helps save people money - at a time of hikes in gas and electricity bills.  Mr Ivory said, "Instead of Labour's approach of punishing families with ever higher taxes, we should be using incentives to encourage people to go green and invest in eco-friendly technology. Encouraging people to invest in green companies has a double benefit - helping the environment and rewarding people for saving money responsibly."

PLANS FOR GREEN SAVINGS

On 27 February, Conservatives announced plans for create new Green Individual Savings Accounts. The Green ISA will be designed to give savers a generous tax free savings allowance, while promoting investment in Britain's greenest companies.  A working group is now drawing up criteria for qualifying companies and will develop a green kitemark to provide greater transparency to investors about the environmental policies of Britain's companies. The companies likely to meet the criteria would be those who are beating the trajectory to meet the UK's national C02 reduction targets and leading the drive towards a low carbon economy.   The creation of this green qualifying threshold will be designed to encourage companies to implement environmentally friendly policies to qualify for this additional investment stream. It is envisaged that an independent body would determine whether companies met these requirements, and would be responsible for revising and updating the criteria over time.

PLANS FOR MORE GREEN ENERGY

In December, Conservatives announced plans to change the architecture of Britain's energy supply. It will enable every small business, local school, hospital and household in the country to generate electricity through microgeneration. The plans involve:
· Introducing a system of feed-in tariffs, so that a fixed price is paid for all electricity produced from decentralised, low -carbon sources;
· Allowing any individual or organisation using an accredited professional to install a certified low carbon generating appliance of below 250kW to be eligible to receive these feed-in tariffs;
· Empowering the Secretary of State to set feed-in tariffs for each form of micro-generation, which will be added as credits onto the bill of every micro-generating producer according to the amount of electricity they produce;
· Creating a Decentralised Energy Fund, so that the electricity supplier's net cost in paying the tariff will be met by government;
· Funding the scheme in the short term through the abolition of existing micro-generation grant schemes - with costs over the long term met by the revenues received from the auction of permits for the Emissions Trading Scheme;
· Ensuring smart meters are available free of charge to anyone installing micro-generating capacity;
· Working with the financial sector to develop long-term fixed-rate lending schemes to make the purchase of micro-generating equipment simpler and quicker; and
· Changing the remit of Ofgem to reduce carbon emissions through the encouragement of decentralised energy.

A full version of the pamphlet is available at:
http://www.conservatives.com/tile.do?def=news.story.page&obj_id=141056