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VAT reduction campaign gets cross-party support
Published:  03 January, 2012

An industry campaign to get a VAT reduction to 5% for boilers and flue heat recovery products has gained full cross-party support in Parliament, after an early day motion was tabled in December.

The motion, titled Fiscal Incentives for Energy Efficiency, was tabled on 14 December, 2011, by Alan Whitehead, Labour MP for Southampton.

The existing 5% VAT rate for energy-saving products excludes energy efficient boilers, windows and passive flue gas heat recovery systems.

As such, the motion calls on government to introduce this year "a package of fiscal incentives to encourage householders and landlords to install energy-efficiency measures, including a 5% VAT rate on A rated boilers installed by Green Deal-accredited installers".