One of our campaign points, reducing VAT from 17.5% to 5% for all maintenance and home improvement, has been in the news lately. A broad coalition of organisations including the Federation of Master Builders (FMB), the Royal Institution of Chartered Surveyors (RICS), and the National Home Improvement Council (NHIC), has been formed. The ‘Cut the VAT’ Coalition is calling for a reduction in VAT to help the Government achieve its target of cutting carbon emissions by 60 per cent by 2050; to help eliminate ‘cowboy’ builders; and to tackle fuel poverty at a time when four million households cannot afford to heat their homes.
In response to our entreaties on the subject, we have received a reply from the Financial Secretary to the Treasury, Jane Kennedy MP, who, as part of a detailed letter, says that reduction of VAT to 5% under EC VAT legislation is not permitted on goods alone, such as insulation material. She said: “Goods and materials can only be reduced-rated when they are part of an overall service.” The ruling prevents the government from acting unilaterally and reducing the VAT rate. Ms Kennedy further says the Government is “making a case at EU level for changes to the European VAT agreements”. No time scale was mentioned.
Regarding our two other campaign issues, our local MP Theresa Villiers (Con) has secured a reply, dated 20 May, from Iain Wright MP on behalf of Housing Minister Caroline Flint MP and the DCLG. Mr Wright says micro-generation, and specifically feed-in tariffs, is “being looked at as part of the Government’s initiative to develop a UK renewable energy strategy to meet EU targets”. Led by BERR, four other government departments are involved in the consultation process. “We intend to issue a formal consultation,” he said,” before this summer recess.” The recess commences 22 July.
Lastly, on our third campaign point of Council Tax rebates for energy-efficient homes, Mr Wright sought clarification as to what we are seeking a discount on – a point that was clearly made, we felt, in our original letter, addressed to the then Housing Minister Hazel Blears MP on 17 January 2008. Climate change advocates – including Government scientists – argue that time is of the essence if we are to prevent irreversible damage to the planet. Has anyone told our elected and accountable bodies of the need for urgency?
