The Federation of Master Builders (FMB) has welcomed the UK chancellor’s decision to cut VAT to 0% on home energy saving measures. The move will help boost the drive for energy-efficient homes, its leader argued, responding to today’s spring statement announcement.
Brian Berry, the FMB’s chief executive, said: “With 29 million homes in the UK, of which many are leaky and energy inefficient, decarbonising our existing housing stock represents an important piece of the net zero puzzle. Historically, consumers have not been properly incentivised to commission green upgrades to their homes. This VAT cut will help householders insulate their home at a time when energy bills are escalating. It will also provide a much-needed boost to local builders operating in the retrofit market. The government now needs to build on the VAT cut and implement a long term National Retrofit Strategy to provide business certainty.
“The commitment from the chancellor to improve the UK’s skills system is encouraging, notably the push for greater numbers of employers to train up staff. This is particularly true for construction, a sector that has suffered long-term skills shortages. Smaller firms in the construction sector already conduct the bulk of the training, with 71% of all construction apprentices being trained by them. Measures should focus on providing long-term solutions that incentivise more businesses to play their part in training the next generation of tradespeople. The FMB therefore welcome the chancellor’s commitment to enhance this system.
“Unfortunately, the chancellor made no reference today to the impact of the planned end to the red diesel rebate on many smaller construction firms, already suffering from rising costs. While the cut in fuel duty will support builders in their travel to and from jobs and make buying regular diesel for machinery cheaper, delaying the end of the red diesel rebate would have made a much more positive impact on builders’ wallets. This is precisely the wrong time to heighten costs for building projects, with an additional need for there to be greater alignment in ensuring that green alternatives, such as bio fuels, are affordable and accessible for construction firms.”
