The UK Warehousing Association (UKWA) has broadly welcomed keenly anticipated announcements from the Government, including measures detailed in the Chancellor’s fiscal statement and the additional news of a new £55m fund to support energy transition for UK’s industrial sector, which was published simultaneously.
According to Clare Bottle, CEO, UKWA, the focus on the potential for reducing industrial greenhouse gas emissions through switching to more sustainable technologies, enabling UK industry to reach net zero, chimes with UKWA’s recent report on solar power in warehousing, which showed that by embracing solar power the sector alone would be capable of doubling UK’s solar capacity, saving billions of pounds in electricity costs and millions of tonnes of carbon emissions.
“Based on our research findings, we have prepared a policy paper on the potential benefits and barriers to implementing solar PV on warehouse rooftops across the UK, so we are encouraged to see that support for industry to transition to sustainable and more secure energy supplies is clearly on the Government’s agenda.”
In the short term, the six-month Energy Bill Relief Scheme (EBRS) designed to protect non-domestic energy users from rising energy bills this winter was expected and is welcome. UKWA looks forward to future updates on potential further support from Government for industry after March 2023.
Other measures announced as part of the Government’s Growth Plan, includes new legislation (the Planning and Infrastructure Bill) to accelerate delivery of major infrastructure projects across England, aimed at ensuring energy infrastructure, gets built more quickly. While this is good news for the sector, Clare Bottle says that UKWA is still determined to highlight the need for further planning reform on land use to facilitate the development of much-needed additional warehousing space close to population centres.
“It remains to be seen whether the plans for Investment Zones will help unlock additional warehouse development, although the various tax incentives being considered, such as 100% business rates relief and Enhanced Capital Allowance for qualifying companies on plan and machinery assets – would represent major benefits for new and expanding warehouse operators.”
She adds that the potential Employer National Insurance Contributions relief being considered for companies within Investment Zones would be helpful to the industry in combatting labour shortages and low pay and proposed Stamp Duty Land Tax for land and buildings bought for use or development for commercial purposes would support the growth of warehousing, albeit only within the designated zones.
“We understand that the Department for Levelling Up, Housing and Communities, under which responsibility for warehousing falls, will shortly set out more detail on the Government’s planning offer. Hopefully, this will include detail on the level of deregulation and the streamlined mechanism for securing planning permission.”
Clare Bottle concludes, “There is much in the Government’s Growth Plan that is helpful to our sector, including the extension of the Annual Investment Allowance (AIA), which will support business investment and make tax simpler for any business investing in plant and machinery. We have yet to see all the detail around the proposals for Investment Zones – and the devil is always in the detail – but we are particularly pleased welcome the Government’s commitment to energy transition and stand ready to work alongside policy makers and implementors to accelerate the journey towards cost-effective, affordable, sustainable, and secure energy alternatives.”
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