The government should cut VAT on repairs for electrical goods and green home improvements, to help reduce greenhouse gas emissions, an influential committee of MPs has said.
In its “Growing back better: putting nature and net zero at the heart of the economic recovery” report, published on 17 February, the Environmental Audit Committee called for VAT reductions in sectors including home energy efficiency and ultra-low emissions vehicles. It believes that this move could offer longer-term certainty than the Green Homes Grant and current scrappage schemes.
Committee chair Philip Dunne MP said “The Covid-19 crisis must be treated as a wake-up call; it is a symptom of a growing ecological emergency […] the economic recovery will shape our national economy for decades to come, and it is crucial that tackling climate change and restoring nature is at its core”.
Noting that buildings currently contribute about 17% of the UK’s greenhouse gas emissions, the report also urged the government to ensure that its “build, build, build” agenda has, at its heart, a commitment to delivering truly sustainable development by promoting the construction of low-carbon homes fit for a changing climate.
