Figures produced by the Scottish Government have shown that annual household energy expenditure in Scotland over the last four years has risen at three times the rate of household income. These figures reveal an increase of 24 per cent in annual household expenditure on gas and electricity while domestic income rose by just 9 per cent.
With a quarter of all Scottish households now experiencing fuel poverty the Westminster Government needs to act promptly and cut VAT on all building repair and maintenance work from 17.5 per cent to five per cent. This cut would enable thousands of families to upgrade their homes to make them more energy efficient.
Grahame Barn, Director of Federation of Master Builders Scotland said:
"As Scottish homeowners struggle to pay ever rising gas and electricity bills the Westminster Government is profiting handsomely from the five per cent VAT charged on energy bills. The Chancellor could stop this desperate situation from getting even worse by cutting VAT for all building repair and maintenance work."
Berry continued:
"The truth is that the current high rate of VAT on building repair work prevents people, particularly those on low-incomes, from maintaining their homes. In many instances, this results in people living in misery because they cannot afford to have basic repairs or central heating installed. What makes this worse is that these tend to be the most vulnerable people in our society, with the elderly particularly at risk."
7 August 2008
