PBR Criticised for Discouraging Green Homes

Posted under Blog by Ruth

The pre-budget report was announced last week on December 9th. However, it has been criticised fro not meeting government ambitions regarding energy efficiency in homes across the UK – according to the Federation of Master Builders (FMB).

A key decision by chancellor Alistair Darling was to raise the VAT rate back from 15% to 17.5% on January 1st. The head of FMB external affairs, Brian Berry, has claimed that this will be a ‘serious blow’ to builders as well as residential property owners who want to make green improvements to their home (both as a way of saving money on energy bills and helping the environment).

Berry added that ‘given the government’s stated commitment to refurbish every single home by 2030, it is very disappointing that the Chancellor has decided to increase the VAT rate’.

However, it was also announced that public spending is set to grow by 2.2 percent in 2010-11, which could help to support a number of jobs in the building industry.

Despite the fact that the VAT rate will rise, green building upgrades are still a huge investment for your home, helping to save a total of hundreds of pounds off your energy bills each and every year.

Double glazing, for example, helps to keep your home naturally warmer, allowing you to turn down the thermostat – saving an average of £135 each year.