2nd March 2010 – FOR IMMEDIATE RELEASE
The Government’s new green strategy to transform the UK’s existing housing stock would benefit from a simple tax incentive to help householders worried about attaching a debt to their home to pay for energy efficient improvements, warns the Federation of Master Builders (FMB).
Brian Berry, Director of External Affairs at the FMB said:
“A simpler way of encouraging householders to make their homes greener and more energy efficient would be to cut the rate of VAT to 5% for home improvements. Many householders under the Government’s proposed ‘pay as you save’ will be worried about attaching a new debt to their property and the impact this could have on the resale value of their home. We know that the cost of cutting VAT to 5% for repair and maintenance work would cost the Treasury between £102 and £508 million but the total stimulus to the British economy as whole would be in the region of £1.4 billion. Added to this is the fact that a cut in the rate of VAT would create an extra 55,000 new jobs which is not an insignificant number when unemployment is on the rise.”
Berry continued:
“The Government’s green strategy has been long awaited and is a certainly a welcome boost to help transform the UK’s housing stock. The challenge is immense but does offer fantastic new opportunities for householders wanting more energy efficient homes and for the building industry which will benefit from the new market opportunities. The FMB recognises the need for high standards in the retrofit market and will be working with the Government to address how best these can be achieved.”
Berry concluded:
“Improving the information contained in Energy Performance Certificates (EPCs) is long overdue but if the Government is serious about transforming our homes it will need to think also about introducing new standards at the point of sale otherwise they will continue to be largely ignored by both sellers and buyers.”
