Should energy efficient businesses pay less tax?

Energy efficient companies should be offered lower business rates, according to radical tax reforms proposed by the British Retail Consortium (BRC).

The BRC's new Road to Reform document aims to drive investment in the retail sector by reducing the tax burden on small and medium sized investors in a way that encourages the roll out of new energy-saving technologies.

The industry association has long argued that the current taxes imposed by the Treasury based on the size and location of a property deter businesses from expanding their premises and investing in growth.

Now it is urging the Treasury to abolish business rates based on rateable values and bring in a new tax based on energy usage, which could in turn be used to drive investment in energy efficiency technologies and help slash carbon emissions.