MPs urge energy efficiency VAT breaks
MPS are urging Prime Minister Boris Johnson to increase measures to combat climate change and boost the green recovery from the coronavirus pandemic.
In a new report, titled Growing Back Better: Putting Nature and Net-Zero at the Heart of the Economic Recovery, the Environmental Audit Committee outlines several calls to action including UK-wide nature restoration and using hydrogen fuel in heavy industry.
The report welcomes the initial commitments of the PM’s Ten Point Plan but highlights several policy gaps. The EAC sees VAT reductions as part of the solution in sectors including home energy efficiency and ultra-low emissions vehicles.
EAC chair Philip Dunne MP said, “The Covid-19 crisis must be treated as a wake-up call; it is a symptom of a growing ecological emergency. The economic recovery will shape our national economy for decades to come, and it is crucial that tackling climate change and restoring nature is at its core.
“A tax system fit for net-zero Britain is key. It will encourage innovation, give confidence to the sector and support companies to make the low-carbon transition. There are endless initiatives that can lead to a greener future and the Chancellor should use his upcoming Budget statement to start this process.”
The Chancellor is expected to deliver the budget statement in early March.