Government to cut tax relief for community green energy schemes

Treasury unexpectedly axes incentive for building new renewable energy sources, on top of previously announced subsidy cuts

The government plans to cut tax reliefs for community energy schemes to build new renewable power capacity such as solar and wind in a move that will deal a further blow to the UK's embattled renewables sector, green campaigners have warned.

The Treasury is to remove tax reliefs of 30% or more for community energy schemes that reduced the risk for investors and encouraged private capital to help build new energy capacity.