The Liberal Democrats

Lib Dems' pledge to cut VAT on home insulation 'needs to go further'

The Liberal Democrats’ pledge to cut VAT on home insulation “needs to go further”, according to Ifan Glyn, senior hub director at the Federation of Master Builders (FMB).


The Lib Dems’ 2019 manifesto ‘Stop Brexit — Build a Brighter Future’ has been published ahead of next month’s general election.

One of their aims is to ensure that everyone can “afford to heat their home”.

As part of this pledge, they intend to end fuel poverty by 2025, reduce both VAT on home insulation and emissions from buildings, pilot a new subsidised energy-saving homes scheme and graduate stamp duty land tax by the energy rating of the property.

In response to this, Ifan 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.”

However, Ifan did welcome the 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,” he added.

“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.”

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