INDUSTRY NEWS


INDUSTRY REACTS TO SPRING STATEMENT


W


hile support for energy efficient measures have been welcomed, other


aspects of Chancellor Rishi Sunak’s Spring Statement have been with disappointment in some sectors of the industry.


Phil Hurley, chair of the Heat Pump Association (HPA) said: “The decision to cut VAT from 5% to zero on energy-saving measures is an important step forward. Whilst this decision alone will not be enough to enable all households to access technologies such as heat pumps, we are confident it will play a role in helping to accelerate the switch to low carbon heat. But we must remember that more steps still need to be taken to support the rollout of heat pumps, including the removal of illogical environmental levies on electricity.” Henk van den Berg, strategic business manager, heating & renewables Daikin UK,


said: “Removing VAT from heat pumps and other green measures is a positive step as it will make it easier for households that want to be more energy efficient. This move will also give the green light to many households contemplating a heat pump under this year’s Boiler Upgrade Scheme. “However, eliminating the additional levy on electricity pricing, which was


indicated in last year’s Heat & Building Strategy, has still not been addressed.” Carl Arntzen, chief executive of Worcester Bosch said: “We welcome the removal


of VAT on heat pumps, solar panels and other energy-efficiency measures. We feel this will support the needed transition of UK homes towards a Net Zero future. BESA’s head of technical Graeme Fox, said: “The cut in VAT is a welcome incentive


for business and domestic users, but equally helpful is the simplification of what had been unnecessarily complex tax rules around heat pumps.” “Previously, air source heat pumps of the split air conditioning type had been


specifically ruled out from the reduced VAT scheme. Following lengthy talks between the BESA and HMRC, the guidance has been updated to clarify that air source reverse cycle heat pump air conditioners can be treated in the same way as monobloc heat pumps for VAT purposes.” Kevin Wellman, chief executive of the Chartered Institute of Plumbing & Heating Engineering (CIPHE) said: “The 0% VAT rate will help cut costs and increase demand. However, we must ensure systems are designed and installed correctly to offer the required energy savings. Savvy installers will be signing up to renewable training, such as the CIPHE’s Low Temperature Heating and Hot Water Systems in Dwellings qualification, to ensure they have the knowledge and skill to install such systems.” Mark Wilkins, technologies and training director at Vaillant, said: Vaillant


welcomes the VAT cut on heat pumps and looks forward to understanding the detail of this initiative which helps address the consumer barriers to the low carbon technology. Any mechanism put in place to increase consumer uptake of mass heat pump deployment, is a positive step towards achieving the UK targets. However Mr Wilkins called for the Government to extend the Renewable Heat


Incentive (RHI) until the Boiler Upgrade Scheme (BUS), which aims to help incentivise the installation of heat pumps is fully operational. Meanwhile Mike Foster, chief executive of the Energy and Utilities Alliance (EUA),


was much more disappointed. He said: “The Chancellor has clearly not heard the outcry over rocketing energy bills faced by millions. He has done nothing in the Spring Statement to help the vast majority of consumers who face bills doubling this year.” “His VAT cut on solar panels and heat pumps will be welcomed by those who


make them and by those who can afford to fit them, but a VAT cut on energy bills would have helped everyone. Frankly, consumers waiting to hear good news on their energy bills will be left asking, ‘is that it Chancellor?’”


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