Darling’s first Budget must provide incentives for improved energy efficiency – Construction Products Association
The Construction Products Association has written to the Chancellor ahead of his first Budget statement, urging him to provide householders with incentives to invest in measures that will save energy and help tackle climate change.
The Association’s submission highlighted that whilst industry has made considerable progress in improving the energy efficiency of its operations, government has a crucial part to play in improving the energy efficiency of the existing building stock.
About 70% of the houses that will be around in 2050 have already been built, and those houses built before the latest changes to Part L of the Building Regulations are, on average, four times less energy efficient than houses built to the current standards. The government has now introduced Energy Performance Certificates, which provide house purchasers with an authoritative assessment of the energy efficiency of the building, and the Association believes these provide the catalyst for fiscal incentives to address the shortcomings identified.
Michael Ankers, Chief Executive at the Association said: “The Association has urged government to provide a fiscal incentive to encourage home owners to make investments which improve the energy efficiency of their home. We believe that this would significantly influence their spending priorities. The Association has proposed a refund of some of the stamp duty purchasers pay, providing they invest within say the first 12 months of moving house.
“We would also like to see the lower rate of VAT that currently applies to certain energy efficient products – draught excluders, radiator valves, etc – extended to a wider range of energy saving products. We recognise that this would come at a cost to the Exchequer. However, if the government believes that climate change is the most important challenge that mankind currently faces, then the real cost is very small.”
The Association also called on the Chancellor to reduce Corporation Tax to 25%, bringing it in line with the European average of 24.5%, thereby assisting industry and considerably improving UK competitiveness at a critical time for the UK economy. The submission also highlighted the industry’s concerns about the implementation of the proposed Community Infrastructure Levy.
ENDS
NOTE TO EDITORS:
The Construction Products Association represents the UK’s manufacturers and suppliers of construction products, components and fittings. The Association acts as the voice of the construction products sector, representing the industry-wide view of its members. The sector has an annual turnover of £40 billion and accounts for 40% of total construction output.
FOR FURTHER INFORMATION CONTACT:
Michael Ankers
Chief Executive
Construction Products Association
Tel : 020 7323 3770
Fax : 020 7323 0307
E-mail : michael.ankers@constructionproducts.org.uk
Simon Storer
External Affairs Director
Tel : 020 7323 3770
Fax : 020 7323 0307
Mobile : 0770 286 2257
E-mail : simon.storer@constructionproducts.org.uk
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