23 Mar 2011 10:03:04
Calls for VAT cut on energy-efficient improvements ahead of Budget
A reduction on VAT in the Budget would make a difference to the volume of energy-efficient home improvements, however any such change is unlikely, one expert has claimed.
Gordon Miller, sustainability and communications director of Sustain Worldwide, said a VAT reduction would work, provided it comes in "but only if it is part of the bigger picture of the green deal and a general increased awareness".
The Federation of Master Builders (FMB) was said to have been calling for the government to reduce the levy on green improvements to five percent for a number of years, but little headway seems to be being made, despite support from a number of MPs.
Calls for VAT to be reduced were reiterated once again ahead of the release of chancellor George Osborne's Budget today (March 23rd).
Brian Berry, director of external affairs at the FMB, said: "This cut is essential if the government is to stand any chance of meeting its target of improving the environmental performance of the UK's housing stock."
He said for the coalition to achieve its aim of improving 26 million homes over the next 20 years, nearly 3,600 properties will have to be renovated each day.