The Director-General of Britain’s business body has labelled the recent cut to solar subsidies as “the latest in a string of Government own goals”. John Cridland also said the low carbon sector risks being derailed in the UK.
Mr Cridland told an audience at the CBI East Midlands Annual Dinner last night: “A reduction was already on the cards from April 1, but this will now come in by mid-December – before the consultation has even ended. This is the latest in a string of government own goals, following the Carbon Reduction Commitment becoming a pure revenue-raiser and the North Sea oil and gas tax.
Yesterday a group of solar companies vowed to launch legal action against the Government; they say their action could cause damage to their businesses.
The CBI boss said the move by DECC created uncertainty: “As you all know, moving the goal posts doesn’t just destroy projects and jobs, it creates a mood of uncertainty that puts off investors and they wonder what’s coming next. Some companies have invested heavily in solar photovoltaic systems and in the supply chains needed to install them. That commitment has been undermined by the feed-in tariff decision – and so industry trust and confidence in the government has evaporated.”