Chancellor Rishi Sunak missed a trick when it came to helping those looking to make energy-efficient improvements to their homes, a leading expert has warned.
Brian Murphy, head of lending at Mortgage Advice Bureau, said the move was a good one but still left homeowners facing considerable expense.
The Chancellor reduced the VAT to nil on such products for five years earlier today – it had previously stood at 5%.
He said a better alternative would be to provide a subsidy or incentive to actually encourage the take-up of these products.
Murphy said: “It’s good to see Sunak addressing the ongoing challenge to make homes net zero, in the form of cutting any VAT to be paid on the installation of energy-saving materials over the next five years.
“However, the cost of buying and fitting these materials – even with VAT cut from the previous 5% to zero – means that it can still come at considerable expense to homeowners.
“A better alternative would be to provide a subsidy or incentive to actually encourage the take-up of these products, as opposed to tinkering at the edges with small tax cuts.”
