More ambitious financial incentives needed to upgrade homes, say builders
A better offer for homeowners is needed if we are to reduce emissions from buildings by 2025, according to the Federation of Master Builders (FMB) in response to the Liberal Democrats manifesto published today.
Ifan Glyn, FMB Senior Hub Director, said: “The Lib Dems' pledge to cut VAT on home insulation is a step in the right direction and is an area that we have been lobbying on for a number of years through the Cut the VAT campaign. However, I feel that it needs to go further and VAT should be cut on the labour element of home improvement work across the board. Doing so would simplify the VAT system and send a clear message that boosting jobs and consumer demand in this space is a priority. We know that homeowners are more likely to request energy efficiency upgrades as a bolt on to other building work being carried out on their homes. Cutting VAT across the board would therefore incentivise the de-carbonisation of our homes further."
Glyn concluded: “On a positive note, I strongly welcome the Lib Dems’ pledge to enforce big businesses and government agencies to adhere to the prompt payment code. Smaller building firms are being held back by the abuse of retentions and late payment practices that are rife. Getting tough on serial offenders will help small businesses get back to doing what they do best, which is delivering quality work and training the next generation of builders.”