EUA chief executive Mike Foster
In his weekly blog, chief executive Mike Foster recognised the economy might need some quick wins, with a proven track record, that could be spread across the whole country. A new Boiler Scrappage Scheme would do just this, whilst helping rid homes of their out-dated and inefficient Zombie boilers.
Mr Foster said: “A new Boiler Scrappage Scheme, targeting the estimated two million Zombie boilers still in use, would boost local economic activity. It would support UK manufacturers and local self-employed heating installers. It reduces household bills and lowers carbon emissions.”
“The benefit of this scheme is that is has been proven to work in similar circumstances, after the financial crash and the scheme can bring in higher levels of tax receipts than the initial Treasury outlay. It really is a no-brainer.”
“Getting the economy moving again, quickly, is a must. Long-term national infrastructure schemes have their place, but the economy needs a boost now not just 10 years from now.”
“Spreading the benefit across the whole country is also an important consideration; a Boiler Scrappage Scheme does just that. The Treasury can also control how many scrappage vouchers it wishes to see issued, aiming for 200,000 replacements with a £400 voucher would see an initial outlay of just £80m. VAT receipts on a typical install would realise £92m immediately. In addition, annual VAT receipts would be up by £6m as a result of expenditure switching from gas to other products.”
“These are extraordinary times but turning to the tried and tested approaches could help get our country back to its feet.”