Community energy groups plan to take legal action against the Treasury following its “unexpected” announcement to axe tax relief for the sector.
Community Energy England (CEE) served the Treasury with a ‘Letter before Action’ yesterday – the first step towards launching a judicial review.
It comes as the Treasury proposed to exclude community energy schemes from a list of schemes including the Enterprise Investment Scheme (EIS) and Social Investment Tax Relief (SITR) from 30th November.
Community Energy Scotland and Community Energy Wales, which are working with CEE, said their purpose in taking action “is to make clear to the government how seriously their collective members could be affected”.
CEE Chairman Philip Wolfe added: “Our letter gives HM Treasury a final opportunity to reconsider its position in light of the legitimate expectations of the community energy sector arising from government statements in the 2015 Budget.
“We have not taken the decision to challenge lightly but believe it is important to seek the regulatory consistency necessary to inspire the billions of pounds of investment, which sustainable energy infrastructure needs to survive and thrive over the next decade and more.”
ELN has contacted the Treasury for a comment.