Rochdale MP demands VAT cuts for climate change home improvements

Tony Lloyd MP is demanding that the Government cuts VAT on repairs for electrical goods and green home improvements, to help people reduce greenhouse gas emissions in their everyday lives.

Tony said, ‘Many people in Rochdale and beyond want to play their part in cutting greenhouse gases through improving the energy efficiency of their homes.

‘But this is harder to achieve when the Conservative Government are charging up to 20% VAT on all domestic renewables and energy efficiency measures.

‘It’s even more incredible that the Government has scrapped their flagship Green Homes Grant scheme after only a few months of operation.

‘I’m calling on the Government to remove all VAT on energy efficiency measures and domestic renewables. This would help reduce costs for people, as well as stimulating green jobs and the economy.’

Our homes account for nearly 30% of CO2 emissions and contribute massively to climate change. In October 2019, the Conservatives increased the VAT rate from 5% to 20% on installations of low-carbon goods, including solar panels, domestic wind turbine systems, heat pumps, and inulsation materials. The higher-rate is chargered where the cost of materials exceeds 60% of the installation cost.

Tony said, ‘The UK is hosting vital UN climate talks, called Cop26, in Glasgow this November. The eyes of the world will be on us, and this will be a chance for our country to take action on the climate crisis and lead by example.’

Tony Lloyd is one of 15 cross-party Members of Parliament to co-sign an Early Day Motion (EDM) calling on the Government to scrap VAT on zero carbon. The EDM states that the UK has a ‘that VAT currently imposed on domestic renewables including Solar PV, Solar Thermal, Air & Ground/Water Source Heat Pumps, and further energy efficiency measures, has been stipulated by EU Regulations,’ and that ‘leaving the EU provides an opportunity to review VAT on zero carbon domestic renewables, installations, and energy efficiency measures.’ It calls on the Government to ‘rate all VAT on zero carbon domestic renewable products, installations, associated heating systems, and retrofitting energy efficiency measures, at 0 per cent for a period of 10 years, making Zero Carbon = Zero VAT.’


• The full text of the EDM, and the list of MPs who have signed the Parliamentary motion, can be viewed here: