Spring statement welcome but not enough argue landlords
Today the Chancellor of the Exchequer has announced that the Government will overturn a previous ruling by the Court of Justice of the European Union on the application of VAT relief on energy efficiency measures.
In this afternoon's Spring Statement Rishi Sunak confirmed the Treasury will now scrap the VAT levy on energy saving materials as of April 2022.
Whilst we welcome news of this change, we call on the Government to provide additional clarity on how the private rented sector can address the important issue of energy efficiency.
The Chancellor's Statement also featured other announcements designed to address the UK's ongoing cost of living crisis, including a move to cut the basic rate of income tax from 20% to 19% by the end of the parliament in 2024.
Responding to the Chancellor’s Spring Statement, Ben Beadle, Chief Executive of the National Residential Landlords Association said:
“We welcome the decision to scrap VAT on energy efficiency measures. However, it remains disappointing that the Government has again failed to explain what will be required of the rental sector when it comes to energy improvements. The sector needs clarity as a matter of urgency.
“More broadly, as renters, along with all others, face a cost-of-living crisis, the Chancellor should have reversed his decision to freeze housing benefit rates. Without this, those relying on the benefit will find it increasingly difficult to afford their rents."