Barry Gardiner

Working Hard for Brent North

Labour oppose Tory tax hikes on solar industry in Finance Bill

“The Government should be supporting the clean energy industry to grow”

Labour have tabled an amendment to the Finance Bill to protect households from future VAT hikes on solar panels.

In March 2016, the Tories were forced to accept an amendment from Labour to block a huge planned increase in VAT on solar panels - even though such amendments to budget resolutions are unprecedented.

Building on this success, Labour gone further to protect clean energy industries and households by trying to enshrine this guarantee in legislation.


Rebecca Long Bailey, Shadow Chief Secretary to the Treasury, who is leading Labour’s opposition to the Finance Bill in Parliament, said:

‘’I am delighted to have already forced the Tories to back down on this tax hike which would have cost the solar industry already struggling under Government attacks an extra £200 million and put thousands of jobs in the industry at risk.”

“The Government should be supporting the clean energy industry to grow, giving greater support to industry and pioneering research.”

Barry GardinerShadow Secretary of State for Energy and Climate Change, said:

 “Labour secured a historic government U-turn in March against plans for a enormous VAT increase on solar panels. Today we’re seeking to enshrine this guarantee in legislation, assuring families that are installing solar panels that they won’t be hit with a massive tax hike in the future.  

“This government has mounted a series of incoherent attacks on clean energy industries, costing 12,000 job losses in the solar industry alone. Our action today shows that Labour will continue to stand up for clean energy industries as the best way to power Britain’s future.” 

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