Press Release
8 July 2011
Co-operative sector secures reversal on EIS decision for renewable energy schemes
A campaign by Co-operatives UK, renewable energy organisations and community groups has secured the reversal of a Treasury decision that would have severely disadvantaged communities hoping to benefit from local renewable energy schemes.
In this year’s budget came an initial decision, met with dismay by communities across the UK, that renewable energy initiatives benefitting from the feed-in tariff would no longer qualify for the Enterprise Investment Scheme (EIS), a tax relief for investors in small high risk businesses.
Yesterday - following the campaign – the Treasury announced that it will reverse this decision and exempt cooperative societies and community interest companies, allowing them to benefit from EIS.
Ed Mayo, Secretary General of Cooperatives UK, the trade association for co-operative enterprises, said: “I’m delighted to see government recognition of the value that cooperative and community-led renewable energy initiatives bring.
“We know of at least 20 communities that are planning a community share launch soon, whose business model is based on obtaining both FITs and EIS.”
Paul Monaghan, Head of Social Goals and Sustainability at The Cooperative Group, said: “We know from our support for renewable energy cooperatives, that they are driven by very committed groups of people either working voluntarily or on modest salaries to realise schemes that will bring benefit to whole communities. It is not an easy path to take so we are delighted to see this restriction removed.”
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For more information or to arrange an interview with Ed Mayo please contact Christina Stocks at Ethos public relations:
Tel: 0161 830 7640
Email:
Website:
Notes to Editors:
Co-operatives UK works to promote, develop and unite co-operative enterprises. It has a unique role as a trade association for co-operatives and its campaigns for co-operation, such as Co-operatives Fortnight, bring together all those with a passion and interest in co-operative action.Any organisation supportive of co-operation and mutuality can join and there are many opportunities online for individuals to connect to the latest co-operative news, innovations and campaigns. All members benefit from specialist services and the chance to network with other co-operatives.
The Cooperative Groupis the UK’s largest mutual business, owned not by private shareholders but by almost six million consumers. It is the UK’s fifth biggest food retailer, the leading convenience store operator and a major financial services provider, operating both The Co-operative Bank and The Co-operative Insurance. Among its other businesses are the number one funeral services provider and Britain’s largest farming operation. As well as having clear financial and operational objectives, the Group has also set out its social and sustainability goals in its groundbreaking Ethical Plan, which specifies almost 50 commitments in these areas. The Ethical Plan commits to investing £11m to support the growth and development of co-operatives by 2013, and to extending commercial lending in the area of energy efficiency and renewable energy from £400m to £1bn.
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The Cooperative Group has commissioned an action research project called Community Energy to address the practical and policy barriers facing cooperative and community renewable energy groups. For more information visit
Yesterday HM Treasury published a consultation on proposals to encourage investment in small and start-up businesses with high growth potential, and on supporting seed investment through the tax system. At section 4.19 it states: “Based on the discussions with stakeholders, the legislation ensures that community interest companies, co-operative societies, community benefit societies and Northern Ireland industrial and provident societies will continue to qualify [for EIS], as will trades generating electricity by hydro power or anaerobic digestion.
Treasury press release
Treasury consultation document