Chancellor Rishi Sunak’s announcement that VAT will be removed from the installation of “energy saving materials” on homes has been welcomed by the RIBA, but the institute has also warned the government that it must go further and faster to meet its decarbonisation objectives.

Sunak’s Spring Statement confirmed that from next month measures such as roof insulation, wind turbines, and heat pumps can be installed VAT-free, in a move the chancellor said would save homeowners £1,000 on the cost of fitting solar panels as well as reducing ongoing energy costs.

Although the move has been widely described as a “scrapping” VAT on energy-saving materials, Sunak clearly stated that the move was “time limited” for the next five years. VAT is currently charged at 5% on energy-saving materials.

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