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Government urged to cut VAT on Green Deal

Tuesday, 13 September 2011 3:09 PM

A coalition of business and campaigning groups is calling on the government to cut VAT to improve the Green Deal for home owners.

The 26 organisations including the British Property Federation, UK Green Building Council and World Wildlife Fund want VAT cut from 20 per cent to 5 per cent for all measures approved under the new programme to encourage energy efficiency improvements in existing homes and buildings.

A joint statement has been sent to MPs as they prepare to debate the final stages of the Energy Bill that will introduce deal under which private firms offer home owners energy efficiency improvements and at no upfront cost and recoup payments through energy bills.

It argues that there must be a financially compelling package to encourage people to improve the energy performance of their homes and a consistent 5 per cent VAT rate would make Green Deal packages more attractive.

Ian Fletcher, director of policy at the British Property Federation, said: “The government must prepare for the Green Deal by stimulating further demand in the energy saving market.

“A package of incentives will help to draw consumer attention to the Green Deal, bring more works within eligibility, and help support a successful launch.”

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