It is time to bring VAT relief for energy-saving materials up to date with technology
By David Lennan , Chairman, National Warm Homes Council The government recently announced in the Autumn Statement that the list of energy-saving materials (ESMs) that benefit from VAT relief is to be reviewed and expanded following a call for input in March 2023. The government has indicated it will soon set out the full details before a UK-wide implementation from February 2024. But how can an outdated policy framework be reshaped to help deliver net zero, warmer homes and cheaper energy bills? Plans to update VAT relief for ESMs is an important development that could support the rollout of more energy efficiency measures – helping families to make critical upgrades to their homes to reduce carbon footprints and save on heating costs. The original list of products exempt from VAT was outlined in the VAT Act of 1994 and included solar panels, water turbines and wall insulation. The list was specific rather than just referring to measures that save energy. These rules are now near...