Knowledge Centre

Going green costs small businesses '£3.1 billion'

Implementing green practices has cost small businesses around £3.1 billion in the past year, the Tenon Forum has said.

And, according to research conducted by the think tank last year, the majority of owner-managers are cynical about the government's commitment to environmental issues, with 60% believing that politicians are hijacking green issues in a bid to win votes, rather than out of concern for the environment.

The research also found that the steep costs of complying with green initiatives discouraged many small businesses from investing in sustainable alternatives. Some 42% of those questioned had failed to implement environmentally-friendly measures, and 19% said they had no plans to do so.

Meanwhile, the Forum of Private Business (FPB) has questioned the government's commitment to helping small firms go green. It points to the chancellor's Budget decision to withdraw the 20p-per-litre fuel duty incentive for firms that invest in bioethanol and biodiesel. In its place, the Renewable Transport Fuels Obligation (RTFO) stipulates that by 2010, at least 5% of all fuel sold in the UK will have to be made from sustainable sources. Suppliers that fail to meet the target will be fined.

"It would appear that this government intends to remove an attractive incentive and replace it with another regulatory control," said FPB chief executive Phil Orford.

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