Budget day suggestions on VAT and stamp duty Two steps to improve the country and make it greener
Sir, The Chancellor of the Exchequer has a unique opportunity in his first Budget tomorrow to improve the lives of millions and make a lasting contribution to making Britain a greener, more energy-efficient country by cutting VAT from 17.5 per cent to five per cent on all building repair and maintenance work.
Such a move would have wider benefits than just improving this country’s housing stock. It would directly benefit the millions of people living in “non-decent” housing — according to the Government’s own figures, there are seven million homes classed as “non-decent” in England alone — and the four million families who struggle to heat their homes.
The current high rate of VAT on building repair and maintenance work acts as a disincentive for 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 done or central heating installed. What makes this worse is those worst affected tend to be the most vulnerable people in our society, with the elderly particularly at risk.
With the growing debate about where to build the extra three million new homes wanted by this Government, a cut in VAT would help to make better use of the buildings we already have by helping to bring the 675,000 homes in England alone that are empty at any one time back into use.
Existing homes are responsible for 27 per cent of the UK’s carbon emissions so a cut in VAT would help the Government to achieve its target of cutting carbon emissions by 60 per cent by 2050. And if any further evidence were needed a cut in VAT would also help to eliminate the rogue traders who, according to trading standards, fleeced the British public of more than £1.3 billion in 2006.
The facts are clear. All that is needed tomorrow is the political vision.
Louis Armstrong
Chief Executive, Royal Institution of Chartered Surveyors
Clive Dickin
Chief Executive, Association of Plumbing and Heating Contractors
Richard Diment
Director-General, Federation of Master Builders
Matthew Elliott
Chief Executive, TaxPayers’ Alliance
Julia Goodwin
Editor, House Beautiful Magazine
Simon Hart
Chief Executive, Countryside Alliance
David Ireland
Chief Executive, Empty Homes Agency
Philip Kolvin
Chairman, Civic Trust
Yvonne Orgill
Chief Executive, Bathroom Manufacturers Association
Roman Russocki
Executive Director, National Home Improvement Council
David Salsbury
Chairman, National Landlords Association
Sir, More a quarter of the UK’s carbon emissions come from our homes. We believe that four key tax breaks must be announced in the Budget tomorrow to make it cheaper and easier for households to go green.
A stamp duty rebate on the cost of energy efficiency improvements, such as solid wall insulation, made shortly after moving into a property; Treasury funding for a national scheme of council tax rebates for households installing cavity wall or loft insulation; a massive expansion of the existing landlord’s energy saving allowance; and cutting VAT on the installation of many more energy-saving products and on refurbishing existing properties to a high environmental standard.
The Budget is an opportunity for the Chancellor to introduce these potentially popular green tax breaks which will both cut carbon emission’s and home energy bills — an economic and environmental win-win. Alistair Darling has promised to put sustainability at the heart of his first Budget. We urge him to deliver.
Ed Matthew
Senior Low-Carbon Homes Campaigner, Friends of the Earth
Russell Marsh
Head of Policy, Green Alliance
Jenny Holland
Association for the Conservation of Energy
Colin Butfield
Head of Campaigns, WWF-UK
John Alker
Public Affairs Manager, UK Green Building Council
