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Call to cut VAT on energy efficiency improvements in homes - 23/03/2011

Cutting VAT on improvements to boost energy efficiency levels in the home could increase up-take, thus saving money on more residents' cheap energy bills.

This is the view of Gordon Miller, sustainability and communications director at Sustain Worldwide, who noted that such a move must come as "part of the bigger picture of the green deal".

Consumers also need "a general increased awareness about the significance of energy efficiency and sustainability" he said, pointing out it seems "unlikely" that the VAT rate will be reduced.

"The FMB [Federation of Master Builders] and others have been lobbying the government to reduce VAT to five per cent for energy efficient improvements for five years or more - and little headway seems to be being made, despite support from a number of MPs," Mr Miller added.

His remarks come after the FMB said this month's Budget must include a targeted cut in VAT for all repair, maintenance and improvement works around the home.

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