Saturday
27
April
Local business calls for reduced VAT on building projects
24/01/2022 @ 10:02
Older buildings in Newtown and throughout the area could be saved from dereliction or demolition and emissions and energy use could be slashed if VAT was reduced on eco-retrofitting construction projects, according to two local architects.
In addition, more construction jobs would be created and investment made into protecting the existing built environment, according to Doug Hughes and Richard Lewis of Mid Wales-based architectural practice, Hughes Architects.
The comments come following the latest campaign to have Value Added Tax (VAT) set to zero on deep eco-retrofitting projects on residential properties in the UK. Materials and work on such construction work is currently set at the maximum 20 per cent.
The UK government has already been lobbied by major contractors to cut the 20% VAT to 5%.
And with Wales having the oldest house stock (pre-1900s) in Western Europe, the cut in VAT could have a significant impact on future investment.
“We’re living in a world where we’re all being asked to do our bit to help reduce climate change by reducing our energy consumption. In the UK we have thousands of buildings that are older, less insulated, and poorly designed when it comes to energy efficiency,” said Doug Hughes, Principal Architect and Managing Director at Hughes Architects which has design and planning offices at Newtown and Welshpool, Powys, and Aberystwyth in Ceredigion.
“While new construction projects are, in the main, implementing sustainable building methods and products to create energy-efficient or carbon neutral properties, we have a major problem with the majority of existing properties, predominantly homes.”
A petition* has been launched on Change.org calling on the UK government to stop VAT on eco retrofit projects.
Harry Paticas, who launched the petition, said: Homes in the UK are responsible for about 15% of total carbon emissions, with heating responsible for over 60% of energy use. With the current climate emergency and the serious risk of runaway global warming, there is an urgent need to eco-retrofit our homes to radically reduce emissions.
“With the lack of any significant funding for a UK retrofit programme and homeowners (private and social) obliged to pay 20% VAT on all works to existing homes (with only a few exceptions) there is a strong disincentive to carry out deep retrofit works.”
Richard Lewis, Architect and Director at Hughes Architects, added: “There are grants and some other incentives nationally and regionally to reduce energy use through improved insulation and other works. But these are small and few, making very little impact.
“There needs to be an incentive to attract homeowners to want to reduce the impact of their properties on the environment. One way is by reducing VAT on the project’s materials which can form a big chunk of the cost.”
Hughes Architects has been committed to designing energy efficient homes and buildings for many years and is committed to the RIBA Climate Challenge 2030.
Last year, construction was completed on the practice’s first Pasivhaus certified homes. These were built for Powys County Council and were one of the first such social and affordable housing projects in Wales.
Doug and Richard, who lead the practice’s 14 strong planning and design team, are committed to increasing the amount of carbon neutral properties they design for clients in both the domestic and commercial areas.
This includes work on existing, older, and listed buildings.
“The construction industry has been developing environmentally and sustainable building methods and products to reduce the industry’s impact on the environment for a number of years,” said Doug.
“We incorporate the latest design methods into our work to create properties that have reduced impact on the environment, and we want to be at a point where the majority of those are carbon neutral.
“We’re spending a lot of time working with and meeting the producers of new building materials and methods to reach this. Passivhaus is one and we worked closely with Pave Aways Construction to create such a development at Sarn, near Newtown in Powys.”
“If we can encourage the government, both the UK and in Wales, to help create opportunities that incentivise more eco-retrofitting of properties, then it’ll make a greater impact on climate change for us all.”
In addition, more construction jobs would be created and investment made into protecting the existing built environment, according to Doug Hughes and Richard Lewis of Mid Wales-based architectural practice, Hughes Architects.The comments come following the latest campaign to have Value Added Tax (VAT) set to zero on deep eco-retrofitting projects on residential properties in the UK. Materials and work on such construction work is currently set at the maximum 20 per cent.
The UK government has already been lobbied by major contractors to cut the 20% VAT to 5%.
And with Wales having the oldest house stock (pre-1900s) in Western Europe, the cut in VAT could have a significant impact on future investment.
“We’re living in a world where we’re all being asked to do our bit to help reduce climate change by reducing our energy consumption. In the UK we have thousands of buildings that are older, less insulated, and poorly designed when it comes to energy efficiency,” said Doug Hughes, Principal Architect and Managing Director at Hughes Architects which has design and planning offices at Newtown and Welshpool, Powys, and Aberystwyth in Ceredigion.
“While new construction projects are, in the main, implementing sustainable building methods and products to create energy-efficient or carbon neutral properties, we have a major problem with the majority of existing properties, predominantly homes.”
A petition* has been launched on Change.org calling on the UK government to stop VAT on eco retrofit projects.
Harry Paticas, who launched the petition, said: Homes in the UK are responsible for about 15% of total carbon emissions, with heating responsible for over 60% of energy use. With the current climate emergency and the serious risk of runaway global warming, there is an urgent need to eco-retrofit our homes to radically reduce emissions.
“With the lack of any significant funding for a UK retrofit programme and homeowners (private and social) obliged to pay 20% VAT on all works to existing homes (with only a few exceptions) there is a strong disincentive to carry out deep retrofit works.”
Richard Lewis, Architect and Director at Hughes Architects, added: “There are grants and some other incentives nationally and regionally to reduce energy use through improved insulation and other works. But these are small and few, making very little impact.
“There needs to be an incentive to attract homeowners to want to reduce the impact of their properties on the environment. One way is by reducing VAT on the project’s materials which can form a big chunk of the cost.”
Hughes Architects has been committed to designing energy efficient homes and buildings for many years and is committed to the RIBA Climate Challenge 2030.
Last year, construction was completed on the practice’s first Pasivhaus certified homes. These were built for Powys County Council and were one of the first such social and affordable housing projects in Wales.
Doug and Richard, who lead the practice’s 14 strong planning and design team, are committed to increasing the amount of carbon neutral properties they design for clients in both the domestic and commercial areas.
This includes work on existing, older, and listed buildings.
“The construction industry has been developing environmentally and sustainable building methods and products to reduce the industry’s impact on the environment for a number of years,” said Doug.
“We incorporate the latest design methods into our work to create properties that have reduced impact on the environment, and we want to be at a point where the majority of those are carbon neutral.
“We’re spending a lot of time working with and meeting the producers of new building materials and methods to reach this. Passivhaus is one and we worked closely with Pave Aways Construction to create such a development at Sarn, near Newtown in Powys.”
“If we can encourage the government, both the UK and in Wales, to help create opportunities that incentivise more eco-retrofitting of properties, then it’ll make a greater impact on climate change for us all.”
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