Aldersgate Group reacts to the Chancellor’s Spring Statement

Nick Molho, Executive Director of the Aldersgate Group, said: “We strongly welcome the Chancellor’s announcement to remove VAT from a broad range of energy efficiency and renewables investments in homes. These measures will help make domestic energy efficiency and clean energy projects more attractive and help lower consumer bills.

However, in light of the significant energy security and gas price crisis facing the UK, the Government should also be looking at introducing supplementary measures to drive greater investment in energy efficiency and low carbon heat in homes. These could include the introduction of regulatory energy efficiency targets, incentives introduced through the UK Infrastructure Bank such as 0% interest loans for energy efficiency measures and further grants for heat pumps, as well as a dedicated programme to accelerate skills development in energy efficiency and low carbon heat installation.”

Nick Molho added: “We welcome the announcement to use tax reform to promote greater investment in skills and innovation. Increasing investment in these areas is not only essential to improve the UK economy’s productivity, but also to accelerate low carbon investment in key sectors like energy, transport, heavy industry and buildings.”

Nick Molho concluded: “The Chancellor outlined that the UK’s growth forecast for the coming years has been significantly reduced. This comes at a time where the UK economy faces not only a cost-of-living crisis, but also a need to create good quality jobs across the country to level up the economy. Keeping the UK on track to meet its net zero emissions target has a key role to play in driving investment and job creation across the country in areas such as electric vehicle manufacturing, offshore wind, insulation and heavy industry. Implementing the Government’s Net Zero Strategy at pace should therefore remain a top priority for the Government.”