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Tax cuts for green technology welcomed

The Chartered Institute of Plumbing & Heating Engineering (CIPHE) is encouraged to see the Government support the most vulnerable households through increase funding for the Household Support Fund.

Kevin Wellman, chief executive of the CIPHE

Kevin Wellman, chief executive of the CIPHE was commenting following the Chancellor Rishi Sunak's Spring Statement.

Mr Wellmann said: “While we battle the cost of living rises, installers and the public alike will welcome the fall in fuel duty, and the rise in earning threshold for National Insurance. It is also encouraging to see the government support the most vulnerable households through increased funding for the Household Support Fund.

“There is good news for consumers looking to improve the energy efficiency of their homes and invest in green technology. 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.

“As was seen via the green homes grant scheme’s failure, the UK does not currently have enough trained installers of the green technologies supported by the VAT cut. I would have welcomed an immediate strategy to address this, but a review of employee training and the Apprenticeship Levy is long overdue. As we have documented in our manifesto, there is a dire need to kickstart apprenticeship starts in the plumbing and heating sector. Tax breaks for R&D will only help manufacturers become more innovative at a critical time for our industry, and we would urge the Government to be generous. Finally, in an industry that includes so many small businesses, it is good to see them get a boost of around £1,000 through the rise in the employment allowance.”

 

1 April 2022

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