17 Aug 2010 12:08:04

FSB: Green improvements must be economically viable

The government must do more to help small businesses in the UK improve their energy efficiency, a new report by the Federation of Small Businesses (FSB) concludes.

Entitled Making Sense of Going Green – Small Businesses and Low Carbon Economy, the report claims that the coalition must provide incentives for small firms to make their buildings more eco friendly and expand the current system of loans to make going green economically viable.

As 44 percent of small businesses in the UK rent their premises, the FSB said steps must be taken to make energy efficient improvements beneficial to both the company and the landlord.

This could be done by encouraging private sector providers to pay for the upfront cost of works, linking pay-as-you-save repayments to the building - which would "overcome the landlord/tenant divide" - and waving increased fees for those who improve the rateable value of their property through green improvements.

John Walker, national chairman of the FSB, said: "If the correct policies are put in place now, then small businesses will have the potential to significantly reduce carbon emissions while also delivering the substantial economic growth that the UK economy desperately needs."

There are currently around 4.8 million small businesses operating in the UK which provide around half of the annual UK turnover.