The UK Government plans to stop giving three types of tax relief to community energy projects from 30 November.

Community energy schemes will not be able to receive Enterprise Investment Scheme (EIS), Seed Enterprise Investment Scheme (SEIS) or Social Investment Tax Relief (SITR) under an amendment to the Finance Bill.

Financial Secretary to the Treasury David Gauke told the House of Commons that the changes would stop the tax reliefs from being “misused” by venture capital schemes.

The previous coalition government had said in March that it would keep SITR in place for community energy programmes.

‘Major blow’

Regen SW, a not-for-profit company, said: “This is clearly a major blow for the sector, particularly to groups that are already planning share offers.

“There has been no prior warning of this policy change and no explanation of why the government has decided to take this step.

“For the government to put through a policy change with so much impact on the community sector so quickly with so little discussion is, at best, deeply disappointing.”

> Read more of Regen SW's reaction