17 February 2021
Environmental Audit Committee urges VAT cut for green home improvements and repairs

The Environmental Audit Committee, of which Philip Dunne is chair, is calling on the Government to cut VAT on repairs for electrical goods and green home improvements, to help people reduce greenhouse gas emissions in their everyday lives.

Philip Dunne, chairman of the committee, said ministers must do more to generate a green recovery. “The jury is still out [on whether the government will manage a green recovery],” he said. “Last spring was about keeping the UK economy in aspic, with emergency measures and funding. Now, there is more time to put together measures for the next phase. We need to see that aligned with the objectives of net zero emissions, and that remains to be seen.”

He called for the chancellor to lay out clear plans in next month’s budget to spur low-carbon growth in the runup to the vital UN climate talks, called Cop26, in Glasgow this November. “The eyes of the world will be on us for Cop26,” he said. “Rather than just preaching to other countries, we need to be seen to be taking action.”

In its report “Growing back better: putting nature and net zero at the heart of the economic recovery”, published on Wednesday, the committee said: “We recommend that the chancellor of the exchequer bring forward proposals to reduce the rate of VAT on repair services and products containing reused or recycled materials to increase the circularity and resilience of the UK economy. The government should also reduce VAT on green home upgrades to incentivise more people to install low-carbon technologies and improve the energy efficiency of new homes.”

Read full article in The Guardian