Could reducing the VAT on renovation projects cut carbon emissions and boost the economy?
The pledge to go green
The government has pledged to lower the UK’s carbon emissions by 80% by 2050. One of the most challenging areas will be improving energy-inefficient homes.
There are around 26m residential properties in the UK and many of these will still exist in 35 years’ time. In a bid to reduce the carbon emissions produced by older properties, including listed buildings like Buckingham Palace, a VAT cut on renovation projects has been proposed.
Research by Experian has predicted that a cut from 20% to 5% on the VAT of housing renovation and repairs is required to achieve the government’s target. Additionally they’ve estimated that over £1bn of extra investment would be spent on energy efficiency measures in the next 5 years, if VAT is lowered.
A boost to the UK economy
Other than reducing carbon emissions, slashing VAT on renovations could help restore local economies. Smaller, local firms will typically be asked to complete smaller improvement works, allowing them to benefit from the increase in demand.
This will help create jobs within the building sector, particularly apprenticeships as a high proportion of apprentices are employed by micro-businesses.
Increasing energy efficiency in homes may also have a large social impact. Currently the cost of living in the UK is higher than anywhere in Europe and energy prices rose by 3.4% last year. Increased energy efficiency will result in decreased energy bills, further boosting Britain’s economy.
Increasing energy efficiency in a listed property
Improving the energy efficiency of older buildings (no matter whether they’re listed or in conservation area) can be done without compromising historic character. However, doing any kind of works puts the building, and those surrounding it, at risk.
Taking out the right insurance policies with a professional, dedicated insurer will ensure that your property is completely covered if an accident occurs.
Renovation Insurance Brokers are the market leaders in renovation insurance, supplying secure insurance policies for high-net-worth properties.
We take the time to analyse each property individually to decide how best to safeguard you from the damages an incident can inflict. Then we tailor the right insurance policies to suit your property, ensuring full coverage so that you can carry out the works with complete peace of mind. Give us a call now on 08442 641200 to tell us about your project.