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<p>Part of the purpose of the feed-in tariff (FIT) review consultation was to gather
views on the broader economic impact of the proposed changes. We also sought views
on whether the scheme should be focussed towards specific groups or sectors which
might, for example, include households or communities. We had a strong response from
community energy groups via the consultation and workshops.</p><p>The actual impact
on the community sector will depend on the options taken forward after all responses
to the consultation have been considered. We are currently analysing feedback submitted
during the consultation and intend to publish a Government response as soon as possible.</p><p>The
purpose of the tax-advantaged venture capital schemes is to provide funding to smaller
higher-risk companies that would otherwise struggle to access finance to develop and
grow. To ensure that the schemes are well targeted and deliver value for money, the
government announced at the Autumn Statement the exclusion of all remaining energy
generation activities from the schemes. This follows the exclusion of certain types
of energy generation in 2012, 2014 and 2015, including most recently the announcement
that the provision of reserve energy generating capacity and the generation of renewable
energy benefiting from other government support by community energy organisations
would be excluded from the schemes with effect from 30<sup>th</sup> November 2015,
as well as from Social Investment Tax Relief when that scheme is expanded. These changes
help to ensure that higher risk investments are not crowded out by lower risk investments.</p><br
/><p>We will continue to work with the community energy sector over the coming months
to develop a joint approach that addresses the priorities of the sector and satisfies
our overarching objective of cost-effective emissions reductions.</p><br />
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