B&Q launches campaign to cut VAT on 'green goods'

Published by Ross Macmillan for 24dash.com in Housing and also in Environment

B&Q, the UK’s largest home improvement and garden centre retailer, is today launching a petition for customers, colleagues and MPs to sign up to its campaign to get the VAT reduced on green goods.      

Customers will be encouraged to sign up to the campaign by posting their support in a giant green piggy bank in store.  The green piggy bank first made an appearance at The Prince of Wales’ ‘A Garden Party to Make a Difference’ staged in the gardens of Lancaster House, Clarence House and Marlborough House over the last two weeks and now ‘forest friendly’ cardboard versions of the green pig will go in to B&Q’s largest stores this week and postcards will be sent to MPs.

B&Q believes energy saving should be affordable for all and when surveyed, 95 per cent of its customers agreed that reducing VAT would encourage them to buy energy efficient products.  And in an energy saving move B&Q will from this week pay the VAT on energy monitors meaning customers will be able to benefit from an extra 12.5 per cent off.

Using an energy monitor could lead to substantial savings each year. The average home can save £37 every year by turning off appliances rather than leaving on stand by. Lights and appliances account for 23 per cent of a household’s electricity consumption.

B&Q has evidence that price reductions through VAT cuts drives up sales of energy saving products like insulation and light bulbs. There is real urgency to this - the UK and the EU will miss targets for insulating homes and reducing carbon emissions without swift action to help customers do the right thing.

Euan Sutherland, CEO of B&Q and Kingfisher UK says; ”At B&Q we are committed to making it easier for our customers to green up their homes and we believe the Government and the European Commission must do more to help us make energy saving products affordable to all by cutting the VAT to five per cent.  That’s why we’re launching this petition which we will present to the Treasury later this year.”

B&Q and its parent company, Kingfisher plc have been lobbying the Government and the European Commission for over five years to reduce the VAT on green goods.

VAT is currently charged at the reduced rate for certain energy saving goods and services, but only if these are professionally installed by a third party.  Examples include solar panels and insulation materials.  If somebody wishes to buy goods and services of this kind and fit them to their own home themselves, VAT is charged at the standard rate.

Boilers, including very efficient combi-boilers incur VAT at the standard rate unless they are installed under a Government grants programme and there are some energy efficient products that are charged at the full standard rate in all cases, such as low energy light bulbs. There is also currently no VAT reduction for the electrical goods that are the most energy efficient in their product category e.g. goods that are A rated.