VAT ON DIY INSTALLATIONS OF ENERGY-SAVING MATERIALS

Motion Text

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; notes 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 five 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; 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.