Industry body the Association for Decentralised Energy (ADE) has this week launched a new campaign urging the Treasury to scrap VAT on energy retrofits for the UK’s building stock, in a bid to combat spiralling energy costs.
The letter also argues that the removal of this VAT would also create 42,000 extra full-time equivalent construction jobs
The campaign, consisting of an open letter with 23 signatories including 16 ADE members, calls on the Treasury to remove VAT on energy efficiency retrofits to be reduced to 0%.
The campaigners argue this would help combat rising energy prices while also building towards the UK’s net-zero target for 2050.
Currently, all retrofit works for existing buildings, such as the installation of triple glazing or insulation, have a 20% VAT rate applied. VAT exemptions are no longer limited in the UK following Brexit, and the ADE is calling on the Treasury to exercise these new freedoms to kickstart a retrofit programme.
The ADE’s chief executive Lily Frencham said: “Retrofitting the UK’s inefficient homes will…
