Wednesday, 16 April 2014

Campaigners demand green deal VAT cut

Campaigners are calling for tax breaks to support the government’s green deal as the Energy Bill enters its final stages.

A 27-strong coalition of building groups has issued a statement urging MPs to cut VAT on energy efficiency measures that comply with the green deal to 5 per cent.

Under the green deal, households will be able to get energy efficiency improvements to their homes without paying the upfront costs. They will pay for the work over time using the savings in energy bills.

Campaigners are concerned that the benefits on offer will not be sufficient to tempt consumers to sign up, and want to see extra incentives introduced.

Brian Berry, director of external affairs at the Federation of Master Builders, said: ‘It is critical that the green deal is a success but it needs to be attractive to consumers who may be reluctant to have a “charge” attached to their property.

‘Other incentives are needed to support the green deal which is why a cut in VAT for green deal energy efficient work makes sense.’

Darren Shirley, sustainable homes campaign manager at WWF-UK, said: ‘The green deal will be the only game in town from the end of 2012 and its success is critical to insulating consumers from rising household energy bills and to meeting the UK’s carbon budgets.’

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