Mayor of London Boris Johnson has called on the Treasury to reconsider its plans to cut subsidies for community energy schemes.

Matthew Pencharz, the Deputy Mayor for Environment & Energy, wrote to Financial Secretary to the Treasury David Gauke on behalf of Johnson.

Gauke had previously said that investment tax relief – such as the Enterprise Investment Scheme, the Seed Enterprise Investment Scheme and Social Investment Tax Relief – would continue to be available to community projects.

But the Treasury announced in October that it had changed its mind and would end such subsidies for community schemes.

Involve local councils

Pencharz said that Johnson supported Gauke’s aim of preventing abuse of the system by large investment companies.

But he suggested retaining the tax reliefs for community projects and instead asking local authorities to certify that such projects were genuine as part of the planning process.

A spokesman for the Treasury responded: “The UK Government is committed to supporting the investment and innovation needed to achieve a cost-effective transition to a low-carbon economy, but we also want to do this in a way that is fair and provides value for money to hardworking taxpayers.”

> Read the letter