Enigin Update - Call to Cut UK VAT to Stimulate Green Deal Scheme
THE UK Government has been urged to cut VAT to 5 percent for all energy efficiency upgrades in buildings for businesses and homes under its proposed "Green Deal" scheme.
If the tax isn’t cut the “Green Deal” programme will fail to reach its targets, this is the warning from 27 different organisations in the construction, property and business industries as well as environmental groups who are worried that unless VAT is reduced consumers will be reluctant to take up the Green Deal when it is launched next year.
The UK’s Value Added Tax (VAT) is a form of consumption tax, which from the perspective of the buyer, is a tax on the purchase price, currently standing at 20 percent on most purchases and services.
As MPs prepare to debate the final stages of the UK’s Energy Bill, which is the legislation that will introduce the government’s Green Deal, the “Cut the VAT” campaign supporters have signed a joint statement urging MPs from all parties to ask the Government to reduce the rate of VAT to 5 percent for all Green Deal approved measures in order to begin to stimulate demand.
John Walker, National Chairman at Federation of Small Businesses (FSB) said:
“Confidence among small business owners fell dramatically in the second quarter of the year with businesses in the construction sector not overly confident about their prospects for the third quarter. The FSB is calling for a cut in VAT for Green Deal improvements to help to restore growth in the construction sector and to help the Government achieve its carbon reduction targets. With just over a year until the Green Deal kicks in and as business and household budgets remain squeezed it is vital that the Government begins to incentivise energy efficiency improvements to ensure that the Green Deal is a success.”
Enigin Distributors in the UK will be monitoring this proposal and the progress of the Green Deal scheme, as incentives and programmes promoting energy efficiency upgrades is welcomed by them, with Enigin plc's technology at the cutting edge of providing just what businesses and oprganisations need to save energy and costs.
Picture of Palace of Westminster by Tony Moorey reproduced under CCL.
