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Green Tax is Incoming

The following post is written in a hypothetical scenario however led by an educated and experienced prediction on what is to come in relation to energy efficiency of our buildings, that being Domestic or Commercial.

Last week Theresa May announced what we reported that the UK has taken legislative steps to becoming the first major country that will be zero carbon by 2050.

BEST Compliance couldn’t be happier at this news, in our opinion its 20 years to late however it’s a major step forward. However, we are just over the first year of MEES where the target is set to an E grade, this will likely be upgraded to a D in 2025 and a C grade in 2030. BEST Compliance are averaging around 25% of buildings fall into the current Fail band (F or G). It has been quite difficult getting some landlords to understand the legal obligation and improving the property. This will only get tougher as the Pass grades increase and at the moment a C level would be extremely difficult to ascertain on certain buildings.

Zero Carbon is A+ on the EPC grade, Indeed we have 31 years to get there so its attainable, however as with MEES most landlords will ignore this until the deadline has been reached, MEES even had some Highly placed Directors in Real estate companies ignoring the legislation thus giving their clients terrible advice.

It is our opinion every building in the country CAN NOT reach zero carbon by upgrading buildings alone, and as such the government will need to offset the CO2 from these properties. This can easily be rectified by have schemes in place such as Solar, Hydro, Wind Farms along with Carbon capture and other schemes. However, these are not cheap and as such we believe a green tax will be introduced to everyone that owns property (Domestic or Commercial).

How will Green Tax be ascertained?

BEST Compliance believe this will be worked from an EPC or equivalent then, We believe an equivalent will be in place as we believe that EPCs are not suitable for this exercise as it uses bench marks given by government and as such they will need more personal information using real energy bills.

We also believe the 10-year lifetime of an EPC is far too long and is not accurate past either a new tenancy or a maximum 5 years.

We believe a green tax will start from a 0% for zero carbon and will increase by a certain percentage for every band. G grade being most expensive. It should also be noted if this is the case and when vehicles have all gone electric by this period, electricity gain will be added to this bill. Imagine how much the government will loose when fuel tax has been eradicated, it will be added we believe to the future Green tax.

BEST Compliance are looking at all eventualities and are preparing our clients for the future this means looking past the 10 years we currently predict for our clients but to a 30 year programme.

The future is Green, accept it, prepare for it or be stung.