Labour is today calling for scrutiny on dramatic tax hikes on solar panels, to protect jobs and investment in British clean energy industries.

Labour MPs will join business, industry and campaigners in Parliament to call out plans for up to an eightfold tax hike for businesses that choose to generate clean energy on their rooftops.

State schools that install solar panels would also be adversely affected by the proposed tax hike, while academies and private schools would be largely exempt due to their charitable status.

Barry Gardiner MP, Labour’s Shadow Energy Secretary, said:

“It is a serious act of bad faith for ministers to press ahead with a huge tax hike on businesses that are doing the right thing by generating their own clean energy.

“Businesses made their investments in clean technology as a sound financial decision. They did not expect the government retrospectively to classify their investment so as to subject it to eight times the level of tax. This will cost some businesses more than the value of the energy they are saving and they will be forced to rip these solar panels off their rooftops.

“The Tory Government has an obligation to put all tax changes under proper scrutiny. This industry has already suffered 12,000 job losses in the past year due to incoherent government policies. This latest change is desperately poorly thought through and must be paused to allow for proper scrutiny. And the discriminatory way in which state schools will be hit whilst private schools are exempt is simply outrageous.”

Labour is working with businesses, the Solar Trade Association and 10:10’s Solar Schools to call for the tax hike to be paused and brought forward for proper scrutiny.

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

Mr Gardiner continued:

“Labour secured a historic government U-turn in March against a 400% VAT increase on solar panels, forcing George Osborne to backtrack in his 2016 Budget and derailing Tory plans to make it £1000 more expensive for families to generate solar energy at home.

“Today we’re seeking to enshrine this guarantee in legislation, making households and jobs in the solar industry less vulnerable to future Tory attacks on clean energy.”