Train4TradeSkills News: Calls to cut Green Deal VAT
The Green Deal is the centre of the government’s green dream to create a low-carbon future. While the idea may be good, it’s not all working out as planned, as the Green Deal has met a lukewarm response from homeowners.
That’s why construction trade bodies and environmental groups are campaigning to see Green Deal VAT reduced.
The campaigners want to see the VAT on all Green Deal work cut from the standard 20% to just 5%. According to Construction Enquirer, the campaigners wrote a letter to government ministers, stating:
“The Government must prepare for the Green Deal by stimulating further demand in the energy saving market.
“Without an additional package of incentives few owners and occupiers are likely to take action to improve the energy efficiency of their buildings, even if the upfront costs are met by Green Deal finance.
“Therefore, we urge MPs from all parties to ask the Government to levy VAT at a rate of 5% for all Green Deal approved measures.”
Currently the VAT reduction applies to some energy saving materials, and the campaigners want the 5% VAT rate to apply to everything Green Deal-related.
If the VAT was reduced, then it could lead to more homeowners taking part in the Green Deal and making their homes more energy-efficient, as the products and the work would be significantly cheaper, due to the less tax you would have to pay on the products.
This month a report by Affinity Sutton found that interest in the Green Deal was low. The FutureFit report found that only 4.8% of those asked were willing to sign up for the Green Deal.
That’s why more needs to be done both on promoting the benefits of the Green Deal, and making the whole thing cheaper, so customers are more interested and likely to be a part of the initiative.
What do you think – is cutting Green Deal VAT the way to go? Let us know what you think by sharing your thoughts and commenting below:
- Train4TradeSkills News: Is the Green Deal going to be a failure? (train4tradeskills.wordpress.com)
Posted on September 12, 2011, in construction jobs, construction news, Electrical News, t4ts, train4tradeskills and tagged Affinity Sutton, energy, Energy conservation, FutureFit report, Government Green Deal, green deal, Green Deal VAT, Low-carbon economy, t4ts, Train4trades, train4tradeskills, Value added tax, VAT Green Deal. Bookmark the permalink. Leave a comment.