More than 200 businesses have urged the Chancellor to reconsider the government’s decision to end the zero carbon homes policy.
In the “Fixing the Foundations” plan, George Osborne axed the policy which was designed to ensure all new homes built from 2016 would meet zero carbon standards.
Mr Osborne also terminated a sister policy which applied to all new non-residential buildings such as offices, schools and hospitals from 2019.
In an open letter to the Chancellor, senior leaders from 246 organisations warn the policy U-turn has “undermined industry confidence in government” and will “curtail investment in British innovation and manufacturing”.
The letter reads: “There was a broad consensus in support of the zero carbon policy which was designed to give industry the confidence it needs to invest and innovate in order to drive higher energy efficiency standards and low carbon energy solutions.
“Abandoning the zero carbon policy will have regressive impacts and be harmful to British industry.”
Julie Hirigoyen, Chief Executive of the UK Green Building Council, said: “This U-turn not only means our new buildings will be less energy efficient and more costly to run but it comes at a time when the UK should be taking strong action on climate change ahead of the UN conference in Paris in December.
“We urge Government to reconsider its position for the sake of future confidence in the UK’s low carbon economy.”