Call for net zero firms to pay lower taxes

COMPANIES that achieve net zero should benefit from a lower corporation tax rate than those that have not met that target business leaders have said.

The Institute of Directors (IOD) said the Government could use the introduction of the new rate to encourage firms to support the official drive to cut UK emissions to zero, net of amounts absorbed, by 2050.

The organisation said there is currently a lack of effective incentives and support for small and medium-sized businesses to achieve net zero themselves.

Kitty Ussher, chief economist at the IOD, said: “Our research shows business leaders are keen to understand what they need to do, but there is uncertainty around the short-term business case for change, particularly given other pressing calls on their organisation’s available time and resources.”