Green home improvements ''must become cheaper''

The National Housing Federation has today said that environmental improvements should be made cheaper so that builders and home owners are encouraged to install them at home.

Eight out of ten home owners would consider making environmental improvements to their homes if it led to a reduction in council tax, according to one insurance company.

And the National Housing Federation which claims to be the voice of affordable housing says something must be done.

John Goulding, spokesman for the group, said: "Some environmental improvements have a reduced rate of VAT. If you put a solar panel on then you only pay five per cent. But you can do various other things, and I think for things like double glazing you still have to pay VAT at the full 17.5 per cent.

"So what we''re saying is that they should drop any environmental improvements, whatever it is, to a flat rate of five per cent VAT, making it cheaper for builders and individual home owners to install environmental efficiency improvements."

He said that this would incentivise the installation of green improvements in housing and result in a reduction of carbon emissions.


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