FISCAL INCENTIVES FOR ENERGY EFFICIENCY
United Kingdom · UK Parliament · 14 December 2011
That this House welcomes the recommendation by the Environmental Audit Committee in its July 2011 report Budget 2011 and Environmental Taxes that `the Government should consider providing tax incentives, such as a council tax rebate or stamp duty discount, in next year's Budget to support the take-up of the Green Deal'; further welcomes too the commitment in Budget 2011 to `act to incentivise take-up of the Green Deal before it is introduced in 2012'; notes that the existing reduced rate offive per cent. VAT for energy-saving products excludes energy efficient boilers and windows and passive flue gas heat recovery systems; is concerned that the Landlords' Energy Saving Allowance (LESA) is claimed by less than 0.2 per cent. of UK landlords; therefore calls on the Government to introduce in Budget 2012 a package of fiscal incentives to encourage householders and landlords to install energy efficiency measures, to include afive per cent. VAT rate on all flue heat recovery installations and alsoon `A' rated boilers and `B' rated windows installed by Green Deal-accredited installers, a stamp duty rebate for purchasers making energy efficiency improvements to their home and an extended and increased LESA to incentivise early improvements in the private rented sector before the introduction of the minimum energy efficiency standard; and further calls for an early consultation on a revised system of Council Tax banding that reflects the energy efficiency rating of properties, accompanied by mechanisms to enable low income households to make improvements at low or no cost.