''Cut VAT on green home improvements''

The European Union should play a bigger part in addressing the carbon emissions of homes, according to one property expert.

David Orr, the chief executive of the National Housing Federation, says that there should be a zero-rated VAT on home improvements which aim to improve a home''s energy efficiency.

This is a more extreme measure than that taken by UK chancellor Gordon Brown, who says that the VAT on these items should be reduced to five per cent.

Mr Orr said: "There is massive potential here to cut emissions across Europe and address climate change right now.

"We need to make it as affordable as possible for people to increase household fuel efficiency, cut emissions and reduce the domestic running costs for millions of low-income households across Europe."

About 25 per cent of UK carbon emissions come from homes and there are over 212 million homes across the European Union so a tax break like this may have real potential for the fight against climate change.


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