News release

Introduction of sustainable energy sources in commercial buildings inhibited by current business rate regulations, according to JLL

JLL examines the effect of business rates on sustainability and the move towards net zero carbon, and advocates changing the rating multiplier to reflect the energy efficiency of each property

November 15, 2021

Eleanor Parry

UK Communications Manager
+44 7719 004580

New research from JLL identifies the adverse impact that current business rate regulations are having on the sustainability of commercial buildings in the UK and suggests changes that could support the UK’s climate change objectives.

Business rates could be used to encourage investment into sustainable buildings and encourage improvements to be made by linking the rating multiplier to the energy efficiency of buildings. 

Beneficial changes were announced in the recent Budget to remove the anomalous treatment of self-supply solar and wind power installations but we still await detailed proposals.  The existing regulations have the effect of inhibiting the use of alternative energy sources to heat and power buildings. Relatively simple changes to the Plant and Machinery Regulations could transform the commercial viability of solar and wind power for buildings.

Tim Beattie, Head of UK Rating at JLL, said: “With the Whole Life Carbon Roadmap launched by UKGBC at COP26, which details measuring and reducing operational emissions in buildings, there has never been a more pressing time – and greater opportunity – to align the tax with the UK’s climate objectives. This can encourage fundamental changes to be made to the energy sources in commercial buildings, and the way in which they are used, and ensure that assets are performing efficiently and sustainably, as quickly as possible.”

The full report can be accessed here.


About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce of more than 95,000 as of September 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.