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HHIC question decision to increase VAT on energy saving materials

The Heating and Hotwater Industry Council have reacted angrily to news that the Government plan to scrap the reduced VAT levels for Energy Saving Materials installed in buildings for charitable purposes.

HHIC question how this planned move, effective from August 2013, is consistent with David Cameron’s claim that his government will be “the greenest ever” and his support for the “Big Society”.

HHIC Director Roger Webb said:

“If the Government wants to be “the greenest ever” then they need to show it. Raising VAT on energy saving materials on buildings used for charitable purposes is a triple-whammy. It will stop people investing in energy efficiency measures, putting up building running costs; it will be bad for the environment, as more energy will be wasted and carbon emissions increase; it will be tougher too on the very charities that are part of the so-called Big Society, as they will have to pay 20 per cent VAT not five. We urge the Government not to bow to EU pressure on this and withdraw their planned changes.  However, we support the government in their stance to protect  5% VAT on domestic installations and in particular energy saving measures such as controlswhich would be very damaging for the industry if this was changed in the near future.”

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