Boiler and heating technology manufacturer Baxi is supporting a growing industry campaign to persuade the Government to cut the rate of VAT charged on high efficiency boiler installations and passive flue heat recovery systems.
At the moment, boilers are subject to the full 20% rate, but other energy saving equipment such as controls, insulation, combined heat and power systems, biomass boilers, heat pumps and solar panels attract a special lower rate of 5%. The reduced rate applies to energy saving installations in all residential properties and commercial buildings used by charities. Installations of these systems in new properties are zero VAT rated.
“A temporary cut until the Green Deal scheme that comes into effect in October 2012 would help the industry bridge a potentially difficult funding gap. The beauty of giving a quick boost to boilers is that the Government will see immediate results,” said Sarah Brook, marketing director of Baxi.
“Gas consumption and carbon emissions will fall; householders will enjoy smaller bills and many jobs in the heating sector will be preserved. And it could boost UK manufacturing as most domestic boilers sold here are also made here.”
The HVCA is also backing the campaign and its head of sustainability David Frise said cutting the VAT could be a well-timed move. “With rising inflation and increasing global uncertainty about energy prices, this would send a strong signal from the Government that the best investment you can make at the moment is in energy efficiency.”
View and sign the Cut the VAT campaign at: www.grumble.org.uk