VAT ON DIY INSTALLATIONS OF ENERGY SAVING MATERIALS

Early day motion 275, tabled 19 October 2001 by Peter Bottomley (Conservative). Signed by 61 members.

That this House recognises that climate change is one of the world's most significant environmental challenges and that poor domestic energy efficiency is a key part of the problems noted that 17.6 million UK households have inadequate loft insulation which means that an unnecessary 7.5 million tonnes of carbon dioxide are emitted into the atmosphere each year; expresses its concern that the full rate of VAT is payable on energy saving materials at the point of sale and that a reduced rate of 5 per cent. only applies to people who have energy saving materials professionally installed in their home; fears that the continuance of this anomaly provides a disincentive for people to install energy saving materials themselves; notes B and Q's modelling that shows that if VAT was reduced to 5 per cent. on loft insulation, uptake would increase by up to a third; further notes that during the Energy Saving Trust's Energy Efficiency Week (20th to 28th October) B and Q will be paying the VAT in full for its customers on loft insulation; and therefore urges the Government to secure the inclusion of energy saving materials within the reduced rate provision in advance of the European Commission's 2003 review of VAT.

Signatures by party: Labour 27, Liberal Democrat 23, Labour/Co-operative 4, Conservative 3, Plaid Cymru 2, UUP 2.