Autumn is a reality for Green Deal but no VAT concessions on home improvements!

by | Jun 28, 2012 | Uncategorized

Apparently the final secondary government legislation is in place for a Green Deal framework by autumn, according to Greg Barker MP Minister of State for Energy and Climate Change. He was addressing the recent second meeting of the All Party Parliamentary Group on Green Deal.

At the meeting, Andrew Leech, director of the National Home Improvement Council, raised the significance of a VAT reduction in the context of raising the awareness of Green Deal. He suggested that lower or no VAT on energy efficient home improvements would inspire homeowners to look pay more attention to Green Deal.

He said: “I am pleased that Mr Barker is concerned about the current rock-bottom, public awareness of Green Deal! But is he going to ask the Treasury for a possible reduction in VAT on the materials used in improving houses, in order to bring the public in line with Green Deal”?

“I think that some sort form of Green Deal financial concession is essential to encourage take up by homeowners. If they know there’s a financial incentive they are much more likely to react favourably to Green Deal. I wondered, therefore, if the Secretary of State would be talking to the Treasury about a reduction in VAT?

Mr Barker said: “We are talking to the Treasury around a whole range of issues, and I dare say, if I was Chancellor, cutting VAT on these issues would be a top priority.

“Clearly, however, any measure that is going to cost money has to be seen in the context of the dire situation in the public finances that we inherited and the absolute imperative of reducing the deficit.

“Unfortunately, then, we are operating in a very constrained financial environment in terms of the inducements that we are able to give, as much as we would want them.

“The good news is, however, that despite the deficit situation, the Chancellor has made an additional £200 million available for us to support the rollout of the Green Deal in the first stages. We will be making announcements later about exactly how we are going to deploy that money”!

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