National Insulation Association responds to green tax cuts 

As the green tax cuts message spreads further into industry, key bodies are issuing statements to present their stand on the news that renewables and energy efficiency will now benefit from a VAT cut to 0%. 

The Heating and Hot Water Industry Council (HHIC) has urged the Government to reconsider the proposed Clean Heat Market Mechanism, which seeks to fine boiler manufacturers £5,000 for every gas boiler sold over a certain quota compared to their heat pump sales.

Here the National Insulation Association shares its thoughts on the news. 

“Insulating homes is essential to the success of the government’s plans to reduce carbon emissions in line with climate objectives, but we know that measures are not being installed on the scale required to reduce energy demand in homes and tackle the cost-of-living crisis.  

A ‘whole-house fabric first approach’

“The VAT cut on energy efficiency introduced by the Chancellor today could make a strong contribution to tackling the cost barrier to energy efficiency improvements in the UK, but the NIA welcomes the decision with caution that other financial support will be needed for homes where this incentive is not the right solution.  

“Taking a whole-house fabric first approach will help to ensure that homes are fit for low carbon solutions be it immediately or some years later so it is great that the VAT cut will apply to an array of solutions.”   

Derek Horrocks, chair of the National Insulation Association.